BENGALURU- India’s retail inflation likely slowed to a three-month low in July, bringing it back within the central bank’s target range, on falling food prices and an easing of supply chain disruptions, a Reuters poll found.
The Aug. 5-9 poll of 48 economists showed consumer price inflation eased to 5.78 percent last month from 6.26 percent in June.
If realized, it would be the lowest inflation print since May and within the Reserve Bank of India’s tolerance band of 2 percent to 6 percent – although well above the mid-point.
“There’s a material drop in edible oil and palm oil prices after tariff reductions and global oil price volatility has eased as well,” said Rajni Thakur, chief economist at RBL Bank.
“The inflation trajectory will however continue to remain on the upper end of the RBI’s target range for the current quarter given the underlying core pressures.”
