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The Baseline
11 Aug 2016
Upcoming Announcements - Consumer Price Index, Raghuram Rajan's source of worry, updates tomorrow

Tomorrow the government will release some overall economic data, at 5:30 pm. There are hopes that the Manufacturing Output and Industrial Production numbers will show a boost, encouraging investors that India's economy is on the healthy track, especially with ongoing worries on global growth. 

Also included in this announcement will be the number that caused outgoing RBI Governor Raghuram Rajan so much heartburn in recent months: the Consumer Price Index number, which tracks inflation in prices for Indians. The graph above shows that the CPI has been rising over the target 4% rate in recent months. The last figure was 5.77% - it is now forecast to hit close to 6% in the announcement tomorrow. 

 

Importance Announcement Previous Forecast
Medium Consumer Price Index 5.77% 5.9%
Low Industrial Production (YoY) 1.2% 1.5%
Low Manufacturing Output (MoM) 0.7%  

 

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