Wednesday, Sep 23, 2020 | Last Update : 09:51 AM IST

182nd Day Of Lockdown

Maharashtra122438091634833015 Andhra Pradesh6317495518215410 Tamil Nadu5473374919718871 Karnataka5268764233778145 Uttar Pradesh3588932895945135 Delhi2492592133045014 West Bengal2283021989834421 Odisha184122149379763 Telangana1726081419301042 Bihar169856155824870 Assam159320129130578 Kerala13863398720554 Gujarat1247671051913337 Rajasthan116881972841352 Haryana113075908841177 Madhya Pradesh108167836182007 Punjab99930754092860 Chhatisgarh8618347653680 Jharkhand7267358543626 Jammu and Kashmir65026421151024 Uttarakhand4177729000501 Goa2875322726360 Puducherry2319118065467 Tripura2227215441245 Himachal Pradesh124387836125 Chandigarh102987411123 Manipur9010683859 Arunachal Pradesh7385540813 Nagaland5544445110 Meghalaya4733252838 Sikkim2447190529 Mizoram158510120
  Business   Economy  07 Aug 2019  Inflation likely edged up to nine-month high in July: report

Inflation likely edged up to nine-month high in July: report

REUTERS
Published : Aug 7, 2019, 9:59 am IST
Updated : Aug 7, 2019, 9:59 am IST

Food prices have risen due to lower-than-expected monsoon rains over the past two months.

The July 31-August 6 poll of 30 economists showed retail inflation rose to 3.20 per cent in July from a year ago.
 The July 31-August 6 poll of 30 economists showed retail inflation rose to 3.20 per cent in July from a year ago.

Bengaluru: India’s retail inflation rose for the sixth straight month in July - the longest stretch of monthly increases since January 2016 - to a nine-month high, largely due to a continued rise in food prices, a Reuters poll predicted.

Despite rising, inflation is expected to remain below the Reserve Bank of India’s medium-term target of 4 per cent, clearing the way for more policy easing.

 

The July 31-August 6 poll of 30 economists showed retail inflation rose to 3.20 per cent in July from a year ago, a touch above June’s 3.18 per cent.

The expected rise in inflation was mainly based on an increase in food prices and fuel costs - the biggest components of the consumer price index. Food prices have risen due to lower-than-expected monsoon rains over the past two months.

“Vegetable prices increased last month. Retail prices of petrol and diesel also went up as a result of higher taxes. These factors drove inflation up,” said Sameer Narang, chief economist at Bank of Baroda.

However, rains in coming weeks are likely to make up for a shortfall in the first two months of the season that began in June, according to India’s state-run weather office, raising expectations of food prices remaining subdued over the near-term.

 

Core inflation, which excludes volatile components like food and energy, has been on a downward trajectory since February, suggesting a lack of demand and weak economic activity.

That supports the case for further monetary policy easing. The RBI was expected to cut its repo rate for the fourth consecutive time later on Wednesday. 

“We are not expecting inflation to pick up over the coming months because of subdued demand in the economy,” said Shashank Mendiratta, economist at IBM.

“We also expect inflation to remain below the RBI’s inflation target. That would mean at least two more rate cuts after the forthcoming meeting.”

 

Tags: inflation, cpi, retail inflation, wpi, rbi, food inflation
Location: India, Karnataka, Bengaluru