July retail inflation revised to 1.61%
Lower-than-expected revenue loss from the GST rate rationalisation and some scope for interest rate cut could be favourable factors
Moneycontrol had earlier reported that the ministry was considering a four-year revision cycle
Suravaram Sudhakar Reddy, who was 83, is survived by his wife, BV Vijayalakshmi, and two sons – Nikhil Reddy and Kapil Reddy.
India’s retail inflation eased to 1.6 percent in July, the lowest in over eight years, prompting economists to cut FY26 CPI forecasts below the RBI’s estimate.
This is because the weight of food in the CPI basket is likely to come down; therefore, the RBI may continue to target headline inflation, with a mandate of keeping the rate at 4 percent along with a tolerance band of 2 percentage points on either side. The current framework is valid until March 2026.
While the cooling inflation trend strengthens the case for easing, sticky core inflation and cautious growth outlook may slow the RBI’s pace of rate cuts.
The decline in food inflation tracks the trajectory of wholesale prices, which dipped to a near two years low of -0.13 percent in June, as food inflation eased further in June
The updated index will offer granular inflation trends by product and region, including rural-urban splits
May marks the fourth consecutive month that inflation has remained below 4 percent
The change is expected to improve the accuracy and robustness of CPI estimates, particularly in light of the increasing complexity of electricity billing structures across states
The new index, replacing the decade-old inflation measure, is expected to launch in Q1 FY26
With food prices easing further, economists now see June quarter and FY26 inflation trending below the RBI’s four percent forecast.
India's headline inflation cooled to 3.16 percent in April, marking a 69-month low and paving the way for deeper rate cuts by the RBI, according to experts.
The CPI print sets the stage for another rate cut by the RBI in its June policy of 25 bps, they said.
A vegetarian home cooked meal cost Rs 26.3 in April, down from Rs 26.6 in the previous month and Rs 27.4 in the year-ago period
Services like X-Ray and ECG rose to a 15-month high of 2.23 percent. Tuition and school fee expenses rose 4.7 percent, a 12-month high, in March
Food inflation declined to 40-month low of 2.69 percent in March as against 3.75 percent in February
Retail inflation declined to a seven-month low of 3.6 percent, with food inflation declining to its lowest level in 21 months
Last month, Kerala’s retail inflation rose to a five-year high of 7.3 percent from 6.8 percent in the previous month, even as the overall figure for India eased to a seven-month low of 3.6 percent.
Prices of over half of the food items rose in February compared to a month ago, as households spending more on food and services felt the pinch of rise in prices more than others.
Food inflation eased below 6 percent for the first time since September 2024
Consumer inflation declined below 5 percent for the first time in five months in January
Experts suggest that CPI inflation is likely to ease further in February and see the RBI MPC cutting rates by 25 basis points in April.
Manipur, which has been embroiled in a conflict for 21 months and which witnessed the resignation of its chief minister earlier this week, had the highest inflation in the country at 7.4 percent even as prices eased from 9.4 percent in the previous month