Please upgrade your browser

We take your security very seriously. In order to protect you and our systems, we are making changes to all HSBC websites that means some of the oldest web browser versions will no longer be able to access these sites. Generally, the latest versions of a browser (like Edge, Chrome, Safari, etc.) and an operating system family (like Microsoft Windows, MacOS) have the most up-to-date security features.

If you are seeing this message, we have detected that you are using an older, unsupported browser.

See how to update your browser

India Insights

Monthly update on India markets
30 June 2021
    Download the full reportPDF, 2.05MB

    Summary

    • The wholesale price index recorded an increase of 13 per cent in May, more than double the second highest point in the past five years. Consumer price inflation has also broken through six per cent – the upper limit of the Reserve Bank of India’s inflation targeting corridor
    • In our opinion, the current spike in inflation is due to supply-side disruptions and so will not persist
    • India is the only major Asian economy seeing wholesale price inflation spilling over to consumer price inflation, due to the large makeup of ‘food and beverages’ in the CPI index and the impact of rapidly rising crude oil prices
    • Even if we’re wrong, inflation has not historically been a drag on asset prices