July retail inflation revised to 1.61%
The slower price rise in Apple devices mirrors the broader trend in India’s mobile phone market which has seen an inflation of 25 percent between 2019 and 2024, slightly below the iPhone increase but much lower than the headline consumer price index.
With recent GST reforms easing inflationary pressures and fiscal deficit projections intact, Mint Road gains more policy space while staying firmly data dependent.
Robust demand and pricing power point to a heating economy and core inflation pressures, even as policymakers approve additional stimulus through GST rate cuts
The decline in WPI aligns with the easing of retail inflation, which slipped to an eight-year low of 1.6 percent in July as food inflation slipped further
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.
While food deflation pulls overall inflation down, alcohol prices buck the trend with sharp summer gains
Can a declining inflation and a rising one trigger the same central bank response?
Retail inflation has been below 4 percent for six months, averaging under 3 percent since April
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.
In a world marked by uncertainty, anchoring expectations and a data-driven policy approach remain key to preserving macroeconomic stability
A calibrated approach while steering policies to bolster domestic growth and preparing to act if external shocks, especially tariffs, begin to weigh more heavily on recovery can be the most prudent way forward. RBI will thus remain data dependent, closely tracking the evolving developments, especially on external front
The Reserve Bank of India’s status quo on the benchmark policy rate indicated that it requires further clarity on the quantum of tariffs that Trump may finally levy on New Delhi, according to economists and experts.
With unchanged rates in this meeting, an extended pause is now underway. By the time the data starts showing a slowdown in quarterly GDP growth prints, inflation will likely have normalised to above 4%. This would surely constrain further monetary easing, going ahead
The RBI governor hoped that India and the US will reach an “amicable solution” for both nations' trade concerns
Edible oils, rice, flours and vegetables have recorded sharp increase in the prices, the report said
India is not defending Russia’s war in Ukraine. It is defending its sovereign right to economic stability in the face of volatile global energy politics. It defends the principle that developing economies should not be asked to make sacrifices that wealthier nations themselves are unwilling to make
The impact of inflation on your emergency fund: How much is enough in 2025?
Given the diversity in socio-economic conditions, Indian households do not converge near a common inflation expectation
With the RBI adopting a neutral stance, bond investors now have an opportunity to recalibrate their positions
In an economy where patchy demand has been throttling growth for years, is shrinking inflation a harbinger for more demand pain on the way?
A Moneycontrol analysis shows that 40% of the items on the the consumer price index (CPI) witnessed a faster month-on-month price rise than in May
India's inflation in June declined further to 2.1 percent, its lowest level in over six years. The Reserve Bank of India has already cut interest rates by 100 bps since the start of the year. But can interest rates go down further, or is such a low inflation a bad thing for the economy?
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