‘Inflation to moderate to 5% for Jan.’

‘Inflation to moderate to 5% for Jan.’

Context:

Foreign brokerage Morgan Stanley has recently stated in its report that retail inflation is expected to moderate at 5% for January

Highlights of the Report:

• The report has stated improvement in both inflation and trade deficit numbers for January
• Improvement in inflation numbers has been helped largely by the seasonal dip in vegetable prices
• However, the report has flagged concern that “moderate risks to macro stability are emerging on account of the wider-than-targeted fiscal deficits.”

Additional Information:

• Consumer price inflation (CPI) stood at 5.2% in December
• Official data for consumer price inflation (CPI) for January would be released by the government soon.