Inflation likely cooled, but still remained above RBI target range in August: Report
- The September 4-7 Reuters poll of 45 economists predicted the consumer price index rose 7.00% in August compared to a year ago, a dip from 7.44% in July.
Inflation in India might have eased in August, but remained above the upper end of the Reserve Bank of India's (RBI) 2-6% target for a second month, a Reuters poll found.
The September 4-7 Reuters poll of 45 economists predicted the consumer price index rose 7.00% in August compared to a year ago, a dip from 7.44% in July. Forecasts ranged between 6.50% and 7.65%, with almost two-thirds of respondents expecting inflation to be 7.00% or higher.
The retail inflation or CPI in India hit a 15-month high in July. The government will release inflation data for August on Tuesday.
Cooling vegetable prices after government subsidies and ban exports of some cereals are likely to have brought down headline inflation as food prices account for nearly half of the overall inflation basket.
However, rising energy prices are likely to limit the decline.
The Reuters survey also showed wholesale price inflation, the change in producer prices, was likely -0.60% year-on-year in August after a 1.36% decline in the previous month.
While domestic inflation was expected to remain above the RBI's upper limit of the target range at least until October, it was forecast to remain higher than the central bank's 4% medium term target well into 2025.
However, the RBI was not expected to hike its key policy rate anytime soon and instead start cutting in Q2 2024.
(With inputs from Reuters)
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Business NewsEconomyInflation likely cooled, but still remained above RBI target range in August: Report
First Published:8 Sep 2023, 09:39 AM IST
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