half itself perhaps in March and April."I am surprised at the fuel index, I thought it would be much higher."
SIDDHARTHA SANYAL, INDIA ECONOMIST, BARCLAYS CAPITAL, MUMBAI
"Given that the downside surprise is much lower for core inflation than headline inflation, it looks like the fuel group price increase has not been factored into the headline number and will be added in the numbers going ahead."The RBI is aware of easing inflation but they are worried about current account deficit. I think the GDP print will be more important. We still maintain a 75 bps rate cut view over a period of time going ahead."
ANUBHUTI SAHAY, ECONOMIST, STANDARD CHARTERED BANK, MUMBAI
"The number is lower than expected and manufacturing inflation has surprised on the downside. It is interesting to note that something in commodities like sugar has pushed manufacturing product inflation lower. And core has marginally corrected further to 4.1 percent from 4.2 percent. With this inflation print, we are still maintaining 25 basis points call of a rate cut from RBI on March 19. There is at least a positive on WPI although retail CPI is still elevated."
ANJALI VERMA, ECONOMIST, PHILIPSCAPITAL, MUMBAI
"It should bode well for RBI. Our expectation is that inflation will ease more to 5.5-5.8 percent by fiscal year end. However, the RBI is also now worried about other variables like current account and fiscal deficits in policy making.
"My call is a rate cut will be likely in March or April by another 25 basis points."
UPASNA BHARDWAJ, ECONOMIST, ING VYSYA BANK, MUMBAI
"The inflation number for January is a pleasant figure. The moderating core inflation despite hike in the diesel prices for bulk consumers in the middle of the month would create room for RBI to cautiously cut the repo rate by 25 bps in the March policy."
SHAKTI SATAPATHY, FIXED INCOME ANALYST, AK CAPITAL, MUMBAI
"The print is more in line with our expectation and a result of lower readings in crude and manufacturing indices. Today's number might give a short-term respite for the forthcoming repo cut in the March RBI policy.
"However, the central bank would adopt a cautious approach resulting from