Retail inflation or CPI rose to a 15-month high of 7.44 per cent in July from 4.81 per cent in June. The government has mandated the central bank with keeping CPI at 4 per cent, with a comfort band of +/- 2 per cent.
Retail inflation rate surged to a 15-month high of 7.44 per cent in July, primarily driven by rise in prices of vegetables, cereals, pulses, spices, and milk and products. The effect was seen countrywide. Headline inflation is likely to average above 6 per cent in the July-Sept quarter, and a rate cut by RBI seems unlikely
These findings, which are part of a report released by Lokniti-CSDS earlier this month, suggest that the youth identify challenges relating to the economy as the most significant facing the nation. The report offers insights into career aspirations, job preferences, and expectations of younger Indians.
The headline retail inflation rate fell to a 25-month low in May, thanks in part to a high base effect. But the inflation rate has remained high in several categories of food and household items which means shopping for groceries continues to pinch
Analysts have already begun to lower their inflation forecasts for the entire year. This will create the space for an extended pause by the monetary policy committee