Oddbean

June CPI inflation at 5.08%: Inflation may ease on monsoon pick up, but dashes hopes of any rate cut by RBI before Dec, say economists ========== Economists expect retail inflation to ease in the coming months as rainfall has regained momentum. India's retail inflation rose to a four-month high of 5.08% in June on higher food costs. Food inflation rose to 9.55% in June from 8.69% in May and 4.55% in June 2023. The inflationary impact is felt more acutely in rural areas, where CPI hit 5.66% compared to 4.39% in urban areas. The Reserve Bank of India Monetary Policy Committee (MPC) is expected to be more hawkish and any decision to cut rates will not come before December 2024. An inflation print of +5% will likely keep the MPC more hawkish. The RBI is likely to maintain its pause stance well into December 2023, cautiously observing these inflationary pressures and assessing the broader economic impact of the previous 250 basis points rate hike. #Inflation #Monsoon #RateCut #Rbi #Economists https://www.financialexpress.com/policy/economy-june-cpi-inflation-at-5-08-inflation-may-ease-on-monsoon-pick-up-but-dashes-hopes-of-any-rate-cut-by-rbi-before-dec-say-economists-3553227/