Decline in Market Supply Pushed Headline Index Higher
Headline CPI ticked up by 15bps to 12.56% YoY, highest since April 2018
Core inflation grew by 1bps to 10.13% YoY, highest since August 2018
Food price index jumped 13bps to 15.18% YoY
The decline in market supplies occasioned by the restriction of interstate movement resulted in a spike in prices of staple foods and farm produce in the month of June. Accordingly, food inflation expanded month-on-month by 1.46% – the highest MoM increase in about 24 months. Largely, most of the increase in the food index emanated from higher prices of farm produce. For context, while the headline index expanded 5bps to 1.21% MoM in June, the headline index excluding farm produce contracted 2bps to 0.86% MoM and when further adjusted for energy related cost, the headline index fell 4bps in June. Surprisingly, while imported food increased by 2bps to 1.29% MoM, processed food prices contracted during the month. The decline in the core index by 2bps to 0.86% MoM is however surprising given modest increases in most constituents – HWEGF (+2bps to 0.74% MoM), clothing and footwear (+3bps to 0.90% MoM) and furnishings (+3bps to 0.84% MoM) – expanding during the month.
The information contained in this web site reflects thoughts and opinions of NOVA Research Team only, and the firm is not soliciting any transaction based upon such information.
The contents of this website are for informational purposes only and may not reflect current financial developments or market conditions. You should not act or refrain from acting
on the basis of any content included in this web site without seeking financial or professional advice on the particular facts and circumstances at issue. NOVA Research Team reserves
the right to change any information contained herein without prior notice. The firm is not responsible for any third-party content that may be accessed through this web site.
The distribution or photocopying of the firm information contained on or downloaded from this site is strictly prohibited without the express written consent of NOVA Research Team.