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Retail inflation rises to 4.45% in July on food prices
India's retail inflation, based on the Consumer Price Index, rose to 4.45% in July, up from 4.38% in June, driven by soaring prices of kitchen staples such as onions (22.54%) and ginger…
The Story in Brief
India's retail inflation, based on the Consumer Price Index, rose to 4.45% in July, up from 4.38% in June, driven by soaring prices of kitchen staples such as onions (22.54%) and ginger (83.62%). Food inflation surged to 5.52%, according to data from the National Statistics Office. Telangana recorded the highest inflation at 6.32%, while Mizoram had the lowest at 1.84%.
SBI Research warns inflation may temporarily cross 6% in October-November due to adverse base effects and higher edible oil prices, before moderating to around 5% in Q4 FY27. The Reserve Bank of India has projected CPI inflation for 2026-27 at 5%. Core inflation remains benign, with the RBI expected to keep the repo rate steady at 5.25%.
The Indian Opinion
The narrative that inflation is running out of control ignores that core inflation, excluding food and fuel, remains subdued at around 3.9%. The spike is driven by specific items like onions and ginger, not broad-based demand. The real test will be whether the October-November peak breaches 6% as SBI Research projects, and whether it proves temporary or persistent. That will decide if the RBI can hold rates.
Sources (3): rediff.com, businesstoday.in, thehindubusinessline.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
