Although headline CPI inflation may have moderated to 7% in May 2022, analysts believe that inflation has not yet peaked and that more pain is likely. According to Nomura, headline inflation is likely to exceed 8% in the coming months.

Global commodity prices continue to rise, while India Inc faces margin pressures despite passing on the costs to consumers. In an effort to cool rising inflation, the central government announced a significant reduction in central excise duty on gasoline and diesel, resulting in some moderation in the latest figures.