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GST roll-out stokes concerns over services-led core inflation rise

Nomura estimates the annual core rate could rise as much as 60 basis points

Reuters  |  Mumbai/New Delhi 

People have started paying more for items ranging from movie tickets to cholesterol tests, thanks to new goods and services tax (GST), and that raises the prospect the central bank will grow more cautious about cutting interest rates deeply. Increases in charges for services, if sustained, threaten to push up core inflation, which excludes food and energy prices. Nomura estimates the annual core rate could rise as much as 60 basis points. Although headline inflation slumped to 2.18 per cent in May, its lowest since a new series was adopted five years ago, core inflation has ...

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First Published: Tue, July 11 2017. 18:50 IST
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