Industry Odisha Bureau, Aug 13: The retail inflation of India reportedly accelerated to 4.45% last month and has also reportedly breached the 4% midpoint target of the Reserve Bank of India (RBI) for the second successive month since January 2025.
Media reports, citing the data released by the Ministry of Statistics and Programme Implementation (MoSPI) have stated that, “As food and fuel prices have firmed up along with elevated crude oil prices further adding to the woes, India’s retail inflation rose to 4.45% in July, and has also surpassed the RBI’s 4% midpoint target for the second successive month since January 2025.”
Reportedly, “Inflation is measured by the Consumer Price Index (CPI), while food inflation is a key constituent of the CPI, and that stood at 5.52% in July up from 5.32% in June, 4.78% in May and 4.20% in April this year.”
Media reports, citing opinions of the experts, have stated that, “Even though inflation remains within the RBI’s tolerance range of 2-6%, further price rise may compel the RBI to increase policy rates. Nevertheless, the RBI’ August Monetary Policy Committee (MPC) has revised its inflation projection to 5% instead of its earlier projection of 5.1%. Despite that, the RBI’s MPC has cautioned against the impending risks being posed by an expected below-normal monsoon impacted by the El Nino phenomenon this year as well as the volatile fuel prices.”
Media reports, citing the RBI’s projections, have also stated that, “India’s Gross Domestic Product (GDP) growth is expected to remain steady at 6.7% from 6.6% in June and 6.9% estimated in April this year.”
