Now Reading: Retail inflation hits 4.45% in July; SBI warns of 6% spike
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Retail inflation hits 4.45% in July; SBI warns of 6% spike
India's retail inflation edged up to 4.45% in July from 4.38% in June, driven by a sharp rise in food prices, especially onions (22.54%) and ginger (83.62%), according to National Statistics Office…
The Story in Brief
India's retail inflation edged up to 4.45% in July from 4.38% in June, driven by a sharp rise in food prices, especially onions (22.54%) and ginger (83.62%), according to National Statistics Office data. The reading is the highest since the new CPI series began in January.
SBI Research warns inflation could cross 6% in October and November before easing to around 5% in the final quarter of this fiscal year. However, the report expects the RBI to hold the repo rate at 5.25% for now, as core inflation remains benign and imported inflation has moderated to 7.3% in July.
The Indian Opinion
The talk of inflation hitting 6% again may cause alarm, but the spike is forecast to be short-lived and driven by food and fuel blips, not broad price pressures. Core inflation excluding food and fuel actually dipped to 3.85%. The real test is whether RBI will keep rates steady as SBI expects, or if household budgets face a prolonged squeeze from rising edible oil and transport costs.
Sources (2): rediff.com, businesstoday.in
This story was synthesised by AI from the 2 sources linked above.
