BoB economist Dipanwita Mazumdar wrote that the BoB essential commodities index (ECI) inched up by 0.6 per cent month-on-month (MoM) in June 2025. However, on a seasonally-adjusted MoM basis, it has fallen by 0.7 per cent.
Thus, the sequential build-up in prices is partly attributable to the seasonal phenomenon, she wrote in a recent thematic report.
On the demand side, some stickiness in core inflation is expected to prevail in future as sowing is progressing well, she noted.
“There also might be visible frontloading of consumption demand due to tax benefit given in the Budget on the backdrop of muted inflation especially on nondiscretionary spending,” she said.
However, for retail energy prices, it is not much of a worry as the buffer is with the oil marketing companies. Thus, inflationary pressure is still residing on the downside, she added.
ALCHEMPro News Desk (DS)
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