BofA said in an Oct. 16 report that Indian price pressures are moving beyond food, and wholesale price gains are likely to transmit to consumer prices within 3–6 months. September WPI rose 11.4% YoY, up from August’s 9.9% and the highest in 49 months; headline CPI accelerated to 5.5% YoY from 4.8% (a 23-month high), driven by broad food-price increases. Core inflation excluding PRECIOUS metals rose to 3.3% YoY from 2.9%, indicating diffusion beyond food. BofA continues to expect the RESERVE BANK

BofA said in an Oct. 16 report that Indian price pressures are moving beyond food, and wholesale price gains are likely to transmit to consumer prices within 3–6 months. September WPI rose 11.4% YoY, up from August’s 9.9% and the highest in 49 months; headline CPI accelerated to 5.5% YoY from 4.8% (a 23-month high), driven by broad food-price increases. Core inflation excluding PRECIOUS metals rose to 3.3% YoY from 2.9%, indicating diffusion beyond food. BofA continues to expect the RESERVE BANK OF INDIA to raise rates by a cumulative 75 bps in this cycle; further pass-through risks warrant monitoring.