Household inflation expectations for three-month and one-year horizons rose to over 10% in July: RBI
Reportedly India's retail inflation edged up slightly in July due to higher food prices, remaining firmly above the RBI’s medium-term target of 4% for a 10th straight month, a Reuters poll showed. Food prices, which account for nearly half the inflation basket, have soared since april due to supply-side disruptions caused by a nationwide lockdown imposed to contain the spread of the coronavirus which has infected more than 2 million people and killed over 44,000 in the world’s second-most populous country.
Meanwhile the central government gradually eased restrictions in june, regional lockdowns in some major agricultural producing states continued to disrupt supplies of essential perishables like fruits and vegetables. The august 6-10 Reuters poll of over 45 economists showed indian retail inflation rose to 6.15% last month from 6.09% in June. Forecasts for the data, scheduled to be released on Aug 12 at 1200 GMT, ranged from 5.00% to 6.55%.
“We see July cpi inflation to be steady above the Reserve bank of India’s 6% policy limit. Food remained a dominant inflation driver but high utility and transport costs also contributed,” said Prakash Sakpal, Asia economist at ING.
Meanwhile the central government gradually eased restrictions in june, regional lockdowns in some major agricultural producing states continued to disrupt supplies of essential perishables like fruits and vegetables. The august 6-10 Reuters poll of over 45 economists showed indian retail inflation rose to 6.15% last month from 6.09% in June. Forecasts for the data, scheduled to be released on Aug 12 at 1200 GMT, ranged from 5.00% to 6.55%.
“We see July cpi inflation to be steady above the Reserve bank of India’s 6% policy limit. Food remained a dominant inflation driver but high utility and transport costs also contributed,” said Prakash Sakpal, Asia economist at ING.