New Delhi: India’s retail inflation quickened to 2.36% in July, reversing its downward trend, as vegetables prices shot up, reducing the probability of any near-term interest rate cut by the Reserve Bank of India (RBI). Consumer Price Index (CPI)-based inflation was at 1.46% a month ago. The government’s recent decision to hike cooking gas prices by Rs4 a month till the subsidy is eliminated may further fuel retail inflation. The Reserve Bank of India (RBI), which cut its repo rate by 0.25 percentage points earlier this month, retained its neutral policy stance, citing uncertainty on the future trajectory of inflation because of several uncertainties. The Economic Survey implicitly blamed RBI for the slowdown in economic growth due to “tighter than assumed” monetary policy.

Source: Mint August 14, 2017 12:22 UTC