The Daily Brief What caused the inflation to drop?
Jan 15, 2025
Retail inflation in India has dipped to 5.2%, driven by lower food prices. Core inflation, however, holds steady at 3.6%, raising implications for investors. The podcast delves into the challenges the Reserve Bank of India faces in maintaining a balance between inflation control and economic growth amidst global financial shifts. It also highlights the effects of currency stability on emerging markets, alongside insightful updates on major companies like HCL Tech and the upcoming IPO of Urban Company.
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India's Inflation Cools Off
- India's retail inflation cooled off in December 2024, reaching a four-month low of 5.2%.
- This decline is mainly due to easing food prices, especially for staples like onions and potatoes.
Unusual Market Behavior
- Despite the Fed's interest rate cuts, the 10-year Treasury bond yield has risen, and the US dollar has strengthened.
- This unusual combination is partly due to a rise in the term premium, the extra return investors demand for holding long-term bonds.
HCL Tech's Strong Q3 Results
- HCL Tech reported strong Q3 results for F5 2025, with net profit up 5.5% year-over-year and 8.4% quarter-over-quarter.
- Revenue also grew by 5% year-over-year and 3.5% quarter-over-quarter.