While the scale of the rise has triggered worries of more rate hikes, these concerns are partially offset by the easing in core inflation, which strips out the volatile components of food and fuel. While elevated food prices may spill over into the August CPI print as well, government interventions and fresh crop arrivals should rein in the rise in food prices going ahead, economists said.
Wholesale price inflation, meanwhile, remained in the negative territory for the fourth straight month in July at (-) 1.36 per cent on easing prices of fuel, even though food articles turned costlier
While the scale of the rise has triggered worries of more rate hikes, these concerns are partially offset by the easing in core inflation, which strips out the volatile components of food and fuel. While elevated food prices may spill over into the August CPI print as well, government interventions and fresh crop arrivals should rein in the rise in food prices going ahead, economists said.
CPI Inflation Rises To 7 44 % As Vegetable Prices Skyrocket In July outlookindia.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from outlookindia.com Daily Mail and Mail on Sunday newspapers.
With food inflation being their major food for thought this time around, the members of Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) may not tinker with the repo rate at their upcoming meeting but the pause would be hawkish, .