3 weeks ago

India Retail Inflation Broadens, Hits 19-Month High in July

India Retail Inflation Broadens, Hits 19-Month High in July
Slowly but surely, retail inflation getting broad-based · financialexpress.com

Inflation is when the prices of things we buy go up over time.

In July, prices in India went up by 4.45% compared with a year earlier, the biggest increase in 19 months.

Food prices went up even more, by 5.52%.

Cost increases spread across most food categories, including proteins, spices, oils, fats and fruits.

Some prices that usually stay calm, called core prices, stayed at 3.9% for three months in a row.

But more and more items are getting expensive, as 65% of the items in the price-tracking basket rose faster in July than in June.

That means price increases are spreading beyond just food and fuel.

The Reserve Bank of India, which manages the country's money, is watching closely.

It expects prices to rise above 5% from October onwards.

If that happens, it may raise interest rates to help keep prices from rising too fast.

Key facts

CPI inflation (July)
4.45% (19-month high)
Food inflation
5.52% (series high)
Core inflation
3.9% (steady for three consecutive months)
Super core inflation
2.7% in July, up from 2.5% in June
Items with inflation above 4%
101 in July vs 65 in January
CPI basket items with higher inflation
About 65% of 358 items in July vs June
Current repo rate
5.25%
Expected repo rate hike
Around 50 basis points by end of FY27

Quotes

Dhiraj Nim

Economist at ANZ Banking Group

“Overall, the July data reinforced our view that inflationary pressures are gradually broadening beyond food and fuel. However, the process remains measured rather than disruptive.”
financialexpress.com

Sources

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