Inflation rears its head again

The CPI and CFPI are up and there are fears that food inflation will continue to rise. High inflation could prevent RBI from reducing policy rates

Another day, another North  Korean missile test. The week ended badly with the yen crashing and Asian equities seeing a sell-off as a result. In fact, there was currency volatility across most major markets for other reasons, too. The yuan gained, the USD lost ground, as did the GBP. The euro ruled strong given low inflation. The rupee was stable enough against this backdrop.

Traders around the world are liable to get a little skittish, given that the latest print on US inflation ran higher than estimates and headline inflation was close to the Fed Reserve’s target of two per cent.