Bank of America: India's Price Pressures Spread Beyond Food

India's wholesale inflation hit a 49-month high of 11.4% and CPI rose to 5.5%, with core inflation accelerating to 3.3%, signalling price pressures broadening beyond food. Bank of America expects pass-through within three to six months and reaffirms a cumulative 75bp of RBI hikes this cycle. Higher policy rates pressure Indian equities and bonds while supporting the rupee; spillover to global markets is limited but adds to the hawkish-rates narrative.