RBI official sees high inflation in Aug too; to moderate from Sep
Informist, Tuesday, Sep 5, 2023
NEW DELHI – Like July, India's inflation may remain high in August as well due to recent surge in vegetable prices, but inflation may start moderating from September, a top Reserve Bank of India official said today.
India's headline inflation shot up to a 15-month high of 7.44% in July from 4.87% in June, due to rise in retail prices of vegetables, particularly tomato.
In July, the inflation in tomato was 201.54%, highest in at least eight years.
The reading for July also forced the RBI to scale up its CPI forecast for the current year by 30 basis points to 5.4%.
The RBI increased the projection for Jul-Sep by 100 bps to 6.2% and for Oct-Dec by 30 bps to 5.7%. The projection for Jan-Mar was unchanged at 5.2%.
"Going forward, the spike in vegetable prices, led by tomatoes, would exert sizeable upside pressures on the near-term headline inflation trajectory," the RBI had said in its third monetary policy statement for 2023-24 (Apr-Mar). "This jump is, however, likely to correct with fresh market arrivals." End
RBI official sees high inflation in Aug too; to moderate from Sep
Informist, Tuesday, Sep 5, 2023
NEW DELHI – Like July, India's inflation may remain high in August as well due to recent surge in vegetable prices, but inflation may start moderating from September, a top Reserve Bank of India official said today.
India's headline inflation shot up to a 15-month high of 7.44% in July from 4.87% in June, due to rise in retail prices of vegetables, particularly tomato.
In July, the inflation in tomato was 201.54%, highest in at least eight years.
The reading for July also forced the RBI to scale up its CPI forecast for the current year by 30 basis points to 5.4%.
The RBI increased the projection for Jul-Sep by 100 bps to 6.2% and for Oct-Dec by 30 bps to 5.7%. The projection for Jan-Mar was unchanged at 5.2%.
"Going forward, the spike in vegetable prices, led by tomatoes, would exert sizeable upside pressures on the near-term headline inflation trajectory," the RBI had said in its third monetary policy statement for 2023-24 (Apr-Mar). "This jump is, however, likely to correct with fresh market arrivals." End
