India`s June inflation hits eight-month high |
India`s retail inflation hit a eight-month high in June on higher food prices, but stayed below the central bank`s target, potentially giving it room for a further interest rate easing to boost slowing growth. Annual retail inflation in June was 3.18%, up from 3.05% the previous month, but below analyst forecasts.A Reuters poll had predicted retail inflation at 3.20% for June.Core consumer inflation, which strips out food and fuel prices, was estimated at an annual 4.09-4.11% in June, marginally lower than May`s 4.1-4.2%, according to three analysts after seeing the inflation figures released on July 12. “Food inflation trend is upwards while core is downwards, so the overall outlook on inflation is benign. The RBI will continue to maintain its accommodative stance and could do another 25-50 basis points rate cuts in this financial year,” said Sujan Hajra, chief economist at Anand Rathi Securities.Inflation has come down sharply from a peak of more than 12% in 2013, and was below the Reserve Bank of India`s (RBI) 4% target for the eleventh consecutive month.
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