ICICI Bank sees food inflation staying high, RBI may hike 25 bps
In short
ICICI Bank said food inflation may stay high for the next few months. It also said the RBI could raise rates by 25 basis points in December. The note came after October CPI rose 6.08% year on year, helped by food prices and base effects.
The view matters because higher inflation can keep borrowing costs elevated for households and businesses. It also affects how traders think about the RBI’s next move.
What the reporting says
ICICI Bank said food inflation is likely to stay high for the next few months and that the RBI may raise rates by 25 basis points in December. The call followed October CPI data that rose 6.08% year on year, driven by food prices and base effects. The bank also cut its FY27 inflation forecast to 5.2% amid monsoon and energy risks.
Why it matters
ICICI Bank projected that food inflation will remain elevated for the next few months and said the RBI may increase rates by 25 basis points in December. The bank also revised its FY27 inflation forecast to 5.2%, citing monsoon and energy risks.