0110 GMT - India's headline inflation in June could remain in the May ballpark on higher pulse and tomato prices, based on high frequency data, HSBC Global Research economists Pranjul Bhandari and Maitreyi Das say in a note. May consumer inflation came in at 4.7% on year. The economists see inflation averaging 4.8% in the June quarter, lower than the RBI's forecast 4.9%. Food inflation remains a concern, they say, noting that pulse prices have risen and vegetable inflation remains elevated. Food prices hold the key for a rate cut by the central bank, HSBC says, adding that "if rains over June and July are strong, reservoirs fill back up, and sowing activity rises quickly, food inflation could fall over a 5-month horizon, opening up space for a shallow rate cut cycle." (monica.gupta@wsj.com)
(END) Dow Jones Newswires
June 12, 2024 21:10 ET (01:10 GMT)
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