Now Reading: India retail inflation hits 19-month high of 4.45% in July
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India retail inflation hits 19-month high of 4.45% in July
India's retail inflation rose to 4.45% in July, a 19-month high, driven by higher food and fuel prices, according to official data released on 12 August. The reading breached the Reserve Bank…
The Story in Brief
India's retail inflation rose to 4.45% in July, a 19-month high, driven by higher food and fuel prices, according to official data released on 12 August. The reading breached the Reserve Bank of India's 4% medium-term target for the second consecutive month but remains within the 2%, 6% tolerance band.
Food inflation, a key component, stood at 5.52% in July, up from 5.32% in June, with onion, ginger and garlic showing strong price pressure. Economists expect inflation to edge up further in coming months, led by food. The RBI, which cut its full-year inflation forecast to 5% in August, is seen staying on hold for now.
The Indian Opinion
The narrative blaming all inflation on monsoon vagaries is incomplete: global crude oil prices and geopolitical tensions are also pushing up transport and restaurant costs. The new CPI series, with 2024 as base, makes comparisons tricky. The real test will come in Q3, when the RBI projects a peak of 5.9%. Watch whether food inflation broadens into core items, that will decide if the MPC must finally hike rates.
Sources (4): livemint.com, thehindu.com, livemint.com (2), economictimes.indiatimes.com
This story was synthesised by AI from the 4 sources linked above.
Updated: this story now draws on 4 sources.
