Key Points
Core inflation, which excludes volatile food and energy prices, may stabilise around 4% in January with a limited scope for further decline as prices continue to be sticky in certain service sectors, according to economists..
Core inflation eased to 4.3% in October, according to official data..
"Core inflation internals remain favourable with decline led by services inflation that is typically less volatile..
"Education and health are very sticky items, and their inflation is hovering around 5-5.5% because of inelastic demand," said Paras Jasrai, senior analyst, India Ratings and Research, pointing out that core is unlikely to dip below 4%...
Goldman Sachs, in its latest report, pegged the core inflation rate for FY25 at 4.6%, unchanged from this fiscal, and forecast headline inflation to stay elevated at 4.9% in FY25 versus 5.6% this fiscal...
