Morgan Stanley cuts 2017 CPI forecast to 3.1% on benign GST, monsoon impact

And, for 2018, it cut forecast to 4.3% from 4.6% earlier

Global brokerage firm Morgan Stanley has lowered its inflation forecast for 2017 to 3.1 per cent from 3.6 per cent earlier citing relatively benign outcomes of goods and services tax (GST) and monsoon.

It, however, said headline inflation troughed in June and the trajectory is still that of a gradual rise in headline inflation.

Morgan Stanley Research has revised the headline consumer price index (CPI) forecast for the calendar year 2017 to 3.1 per cent from 3.6 per cent earlier and for 2018 to 4.3 per cent from 4.6 per cent earlier.

For the ongoing financial year (FY), it expects headline CPI at 3.2