July retail inflation stays low enough to allow RBI a fifth rate cut

VCCircle | Aug 13, 2019 at 6:21 PM
  • India’s retail inflation rate eased slightly in July, staying below the central bank’s 4% medium-term target for a 12th straight month, strengthening views that there will be a policy rate cut in October.
  • Retail food prices, which make up nearly half of India’s inflation basket, increased 2.36% in July from a year earlier, compared with an upwardly revised 2.25% in June.
  • Core consumer inflation, which strips out food and fuel prices, was estimated between 4.47% and 4.6% in July, above 4.09% to 4.11% in June.