RBI unlikely to play Santa again in February

Consumer price inflation picked up to 0.71% YoY in November from 0.25% in October, driven by persistent food price deflation and weak core inflation. Most economists said headline inflation appears to have bottomed out in October on account of lower food prices and one-time GST cut adjustment and expect it to inch up but will be below RBIs 4% medium-term target. RBI has cut the repo rate by 125 bps since the easing cycle began in February stating that it is to support growth as inflation remained benign.