NEW DELHI: A higher-than-expected India inflation reading in June has prompted some economists to raise their forecasts for consumer price gains for the year, cementing expectations the central bank will take more time to pivot to rate cuts.
Barclays Bank sees the consumer price inflation averaging 5% in the fiscal year that ends March 2024, up from 4.7% earlier. Yes Bank has revised its estimated to 5.3%, while Emkay Global Financial Services sees it at 5.2%. The projections take the number closer to the upper end of the Reserve Bank of India’s 2%-6% target band.
