India's easing inflation is only a temporary reprieve for PM Modi

Investors still braving Asia's worst bond market will now turn to the minutes of the Reserve Bank of India's latest meeting

India’s retail inflation eased from the fastest pace in 17 months, offering some respite to policy makers and bond investors battling the fallout of Prime Minister Narendra Modi’s expansionary budget.

Consumer prices rose 5.07 percent in January from a year earlier, the Statistics Ministry said in a statement in New Delhi on Monday, in line with the 5.1 percent Bloomberg consensus. However, the central bank forecasts the pace could pick up to as fast as 5.6 percent by September once the government begins spending for the year starting April 1.

"The CPI will move upwards" on implementation of the budget proposals, said