India’s retail inflation may have spiked close to or over the 6% upper tolerance threshold of the Reserve Bank of India (RBI) in July, owing to a broad-based uptick in food prices, and could remain sticky in coming months, economists reckon.
This could compel the central bank to stay hawkish and possibly raise its inflation projections for the ongoing July to September quarter (Q2) as well as the full year 2023-24 at its monetary policy review this week, and delay hopes of an interest rate cut.
Also read | Govt stays guarded over prices even as core inflation softens
