Inflation abates to below the RBI’s projection, making a rate cut by Oct’23 more likely; industrial growth is steady
CPI inflation receded to 4.25% YoY in May’23, well within the RBI’s target range of 2-6%, as inflation abated across the board. Food and beverages inflation moderated to 3.3% in May’23 (an 18-month low), energy inflation to a 26-month low of 4.6% YoY, and transport and communication prices to a 42-month low of 1.1% YoY.