Instant View: India's retail inflation slows to 1.55% in July
A Reuters poll had projected retail inflation at 1.76%.
COMMENTARY:
The ninth straight fall in CPI might just have signaled the bottoming of inflation. While the low base will ensure a few more benign readings in the coming months, the point to keep in mind from policy perspective is that exit inflation for FY26 i.e. in March 26 would be 3X higher from here
SAKSHI GUPTA, PRINCIPAL ECONOMIST, HDFC BANK, GURUGRAM
Inflation moderated below 2% as the disinflation in food continued. The inflation print was broadly in line with expectations and does not change the outlook on monetary policy as the RBI lowered inflation forecast for the year in its August policy.
If tariff rates for India are closer to 25% or higher, the space for another rate cut in October could open up.
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