• Deccan Chronicle
  • Andhra Bhoomi
  • Asian Age
  • ePaper
  •  Auto Refresh
Home

ePaper
Last Updated:05:06 PM IST | Wednesday, Feb 01, 2023
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Menu
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Home > Economy > Inflation likely edged up to nine-month high in July: report
Economy
Inflation likely edged up to nine-month high in July: report
By  
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.”

end-of
Tags: 
inflation, cpi, retail inflation, wpi, rbi, food inflation
Location: 
India, Karnataka, Bengaluru
Latest From Economy
Former RBI governor Urjit Patel has written a book titled Overdraft: Saving the Indian Saver.

Urjit Patel: Why our banks aren't saviours of the Indian saver

FIEO Director General Ajay Sahai said the global situation is likely to improve in the first half of 2020, which would have a positive impact on India's exports.

Exports to rebound in 2020 but growth to remain subdued

ICRA Economist Aditi Nayar expects moderation in vegetable prices to a large extent by early 2020. (Photo: File)

Inflation leaves consumers teary-eyed as pricey onions, food items bite

Most Popular

Mukesh Ambani 9th richest on Forbes' real-time billionaires list
Top credit card myths harmful for your financial well-being
Microsoft CEO Satya Nadella tops Fortune's Businessperson of the Year 2019
Employment growth slowed down in last two years: report
GST structure: key challenges and its solutions

Editor's Picks

Income tax e-filers drop by over 6.6 lakh in FY19: Official data
Swiping on your smartphone reveals a lot about you to your social media company
  • Read Financial Chronicle as it appears in print.
  • Subscribe, and get it delivered in the inbox everyday.
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
  • Home
  • About Us
  • Contact Us
  • Terms of Service
  • Privacy Guidelines
  • Copyright © 2019 Financial Chronicle, All rights reserved
Developed & Maintained By Daksham