Inflation below RBI's upper tolerance limit of 6% for 2nd straight month. Good news for home buyers?
In December 2022, India's consumer price index (CPI) inflation eased further in December to 5.72% from 5.88% in November and 6.77% in October 2022. This would be the second consecutive month when inflation has come below RBI's upper tolerance limit of 6%.
India's retail inflation stays under RBI's upper tolerance limit for a second straight month in December at 5.72%. This would be the lowest print of India's CPI since December 2021. Also, the current inflation rate is better than expected. Easing in inflation is seen to be a positive for financial markets as the cost of funds seems to go down. If that is the case, upcoming repo rate hikes by RBI are seen to remain less aggressive and could be good news for home buyers who are looking to buy their dream house.