• Prior +6.9%
  • Core CPI +5.6% vs +5.7% y/y expected
  • Prior +5.7%

There is a marginal pickup in headline annual inflation but the core reading is seen slowing slightly in April. That is more or less what the estimates were showing, so it would seem that there is no major surprise to the report here. On the balance of things, this should reaffirm a 25 bps rate hike more than a 50 bps rate hike. I mean if you look at the details, year-on-year food inflation

did slow by a full percentage point to 14.7% on the month.