Expert Views - Consumer inflation accelerates to 5.41 pct in November

MUMBAI (Reuters) - India's annual consumer price inflation accelerated to 5.41 percent in November, picking up pace for the fourth straight month, government data showed on Monday.

The data was almost in line with the forecast from economists polled by Reuters.

COMMENTARY

MADHAVI ARORA, ECONOMIST AT KOTAK MAHINDRA BANK, MUMBAI

"It is bit of a worry to see the trend in food inflation. Though food inflation is not generalised, it is concentrated on some commodities like pulses, and there is also an uptick in meat inflation.

"Overall, we expect CPI inflation to rise going ahead on a waning base effect, but will be at sub-6 percent by March which is within RBI's comfort zone.

"The CPI trajectory will give some room to RBI for further rate easing in the first half of next year."

SHIVOM CHAKRAVARTI, SENIOR ECONOMIST, HDFC BANK

"The broader theme really has been a considerable pick-up in food inflation and unwinding of the favourable base of last year, as well as stickiness in services inflation.

RBI, in our opinion, is going to maintain this status quo in this fiscal year. And then it will really come down to the outcome of the budget and the messages that the government gives in terms of maintaining fiscal consolidation, not cutting back on capital expenditure plans, and also implementing the pay commission hikes.

"So I think the next move, if at all, will happen in the second half of the next fiscal year."

A PRASANNA, ECONOMIST, ICICI SECURITIES PRIMARY DEALERSHIP LTD, MUMBAI

"Both headline and core inflation are as expected. The overall trajectory has remained the same for 2015/16 and we expect CPI inflation at around 5.75-5.80 percent in the January-March quarter, in line with RBI's estimate.

"Given that food inflation has become volatile, core inflation slowing on a sequential basis will give some comfort to the RBI."

(Reporting by Suvashree Dey Choudhury and Karen Rebelo; Editing by Rafael Nam)