IIP, CPI data amid rupee's slide and rising petrol prices is a relief

IIP growth has come in at a steady 6.6%, which is higher than our forecast of 5%

Amidst the very negative environment surrounding the rupee and petrol prices, the latest releases on CPI inflation and IIP growth come as a relief.

1. CPI inflation has come in at 3.7% for August against our expectations of 4% helped by a high base effect which will provide support for the next 2-3 months. However, there is still discomfort in this number as it has been kept at the sub-4% level mainly due to the food products category which has a weight of around 54% in the index. An increase of just less than 1% due to sharp declines in