Telcos' 20% Tariff Hike to Push Core Inflation Up by 0.20% in FY25
The core inflation rate in FY25 is predicted to rise by 0.20% due to a 20% tariff hike by the country's top three telecom companies, according to a Deutsche Bank report. The report anticipates the impact of these hikes to start reflecting from July, alongside concerns over below-trend monsoon rains.
- Country:
- India
The nation's top three telecom companies raising tariffs by over 20% is set to increase core inflation by 0.20% in FY25, as per a report by Deutsche Bank on Wednesday. Analysts also adjusted their core inflation forecast to 3.8%, up by 0.20%, excluding food and fuel prices.
In addition to tariff hikes, analysts highlight below-trend monsoon rains as another critical factor affecting the inflation trajectory. The report notes that the impact of telecom tariff hikes will be observed from July, pushing the month-on-month core inflation by over 0.85%.
'Overall, core inflation is likely to rise by 0.20% in FY25 due to telecom tariff hikes. Consequently, we revise our FY25 core inflation forecast to 3.8%, up from the previously estimated 3.6%,' the report stated. This comes after a pause of more than two and half years, with the largest operator, Reliance Jio, leading the price hike.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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