India’s retail inflation for July increased to 4.45% from 4.38% in June. The July reading was the highest level in about 19 months.
How it fits the RBI’s framework: within tolerance band, above the target
The July inflation rate remained within the RBI’s 2%–6% tolerance band, but it continued to stay above the RBI’s 4% target.
Core inflation stayed low while food, fuel and transport drove the rise
Core inflation, measured as headline CPI excluding precious metals, remained below 3%. The inflation pickup was largely attributed to food, fuel, and transport categories.
