The inflation numbers in the country continue to remain in single digit during the month of August to 32-months low at 9.05 percent as against 9.6 percent the country braved in July (2012). On month-on-month basis, the price hike stood at 0.9 percent as against -0.22 percent of the preceding month, while the average inflation in 2MFY13 stood at 9.3 percent. “The number break-up reveal that soft numbers is due to subdued numbers from food and housing that cumulatively contribute 64 percent,” viewed the analysts at Topline Reserach. The food inflation rose by 8.1 percent in August compared to last year while housing head rose by 4.4 percent. “These soft numbers attach a lower side bias to our average FY13 inflation forecast range of 10-11 percent,” the analysts said. They maintained the view that these soft inflation numbers could allow the room for the central bank to continue the process of monetary easing. The State Bank in its latest moitary policy decision revised downward, by 1.5 percent, to 10.5 percent the discount rate from the previous 12 percent.
Further rate cut likely
