Headline consumer price inflation accelerated to a 15-month high of 7.4% y/y in July amid the surge in food price inflation. While the RBI expects the sharp increase in food prices to prove transitory, the lurking El Niño threat and potential second-round effects on core inflation through a rise in inflation expectations are key upside risks.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.