India’s July inflation quickens to 4.45% from 4.38% in June, stays above RBI target
Economic Times 1 hr ago·12 Aug 2026, 10:34 am
India's retail inflation rose to 4.45% in July, a slight increase from 4.38% in June, and remains above the Reserve Bank of India's (RBI) 4% medium-term target. This uptick is primarily driven by higher food prices, which continue to put pressure on consumer costs. However, excluding precious metals, core inflation appears to be stabilizing, suggesting that the broader price pressures are not as severe.
For investors, this data is significant as it reinforces the RBI's cautious stance on interest rates. The central bank has adjusted its inflation forecast for FY27 to 5%, indicating that monetary policy may remain tight for some time. This environment typically favors stable, cash-generative companies over highly leveraged ones. Market participants will closely watch the upcoming RBI policy meeting to see if any easing measures are anticipated.
Excerpt from Economic Times
India saw its retail inflation rise to 4.45 percent in July compared to June's 4.38 percent, largely due to rising food prices, which are keeping consumer costs elevated. The Reserve Bank of India has adjusted its inflation prediction for FY27 down to five percent. Excluding precious metals, core inflation seems to be…Read the original at Economic Times
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