INSUBCONTINENT EXCLUSIVE:
Food inflation in July stood at a provisional 1.37 per cent.India's retail inflation rate eased to 4.17 percent in July after touching a
five-month high of 5.0 percent in the previous month, government data showed on Monday, helped by smaller increases in food prices.Analysts
polled by Reuters had forecast July's annual increase in the consumer price index at 4.51 percent, compared with June's 5.00 per
cent.Rupa Rege Nitsure, Chief Economist, LT Finance Holdings, Mumbai"As per our expectations, headline CPI has significantly slowed to 4.17
percent, helped by a favourable statistical base for food articles, plus housing and some consumables
However, elevated fuel prices have capped the decline
Core inflation continues to stay sticky around 6.28 percent
Support of favourable statistical base will continue until end December.""Going by today's print, I expect the RBI to take a pause until
However, INR depreciation remains a major risk to inflation besides the sticky core inflation."Tushar Arora, Senior Economist, Hdfc Bank,
New Delhi"The comforting part is that the rise in food prices has been lower than the historical trend in the summer months
The worrisome part is that core inflation continues to be high
RBI is taking a long-term perspective But the long-term risks are still very much there
TheIndianSubcontinent staff and is published from a syndicated feed.)
