INSUBCONTINENT EXCLUSIVE:
in June, from 4.87 per cent in the previous month, official data showed on Thursday
Economists in a poll by news agency Reuters had expected retail inflation - also known as consumer inflation - at an annual 5.30 per cent
Surging fuel prices - triggered by a surge in crude oil prices during the period - and weakness in the rupee against the US dollar led to
a row.Thursday's CPI data cements expectations of a hike in key interest rates by the central bank as early as August
The RBI had last month announced a hike in repo rate - the rate at which it lends to commercial banks - by 25 basis points, or 0.25 per
cent, marking the first increase in hike in more than four years."This is a hugely positive CPI print as it comes much lower than consensus
and our own CPI projection
A clear positive was on the food price momentum that remained muted basis seasonalities," news agency Reuters cited Shubhada Rao, chief
economist, Yes Bank, as saying."Although core remains elevated that may keep the RBI on guard, we have not yet removed the 'risk' of one
inflation In line with seasonal trends, prices of various vegetables have undergone an uptick so far in July 2018, which would keep food
vital for supporting timely sowing and eventual yields, as well as keeping prices of non-MSP items under check," she added.In the "fuel and
light" segment, consumer inflation quickened to 7.14 per cent last month, as against 6.84 per cent in the previous month.Brent crude prices
- a benchmark for international oil prices - rose more than $1 on Thursday
separately showed that factory activity growth, determined by Index of Industrial Production, slipped to 3.2 per cent in May, from 4.9 per
manufacturing sector declined to 2.8 per cent, compared with 4 per cent in the previous month, data from the Ministry of Statistics
The rupee, which had hit a record low against the greenback last month, is down more than 7 per cent so far this year
Weakness in the rupee makes imports costlier since India meets more than 80 per cent of its energy requirements through imports.(With agency
