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Bets on early rate cut off as inflation flares up in June
Hindustan Times
|July 14, 2023
Inflation may average 5-5.4% in the current financial year, higher than earlier estimates
The surprise surge in retail inflation for June has prompted economists to raise their forecast for July amid firming vegetable prices, dashing hopes of a rate cut anytime soon.
Inflation measured on the Consumer Price Index (CPI) came in at 4.81% in June, higher than 4.6% predicted by Mint poll of 19 economists, led by food inflation. After the June price rise data was released, economists now believe inflation could average 5-5.4% in the current fiscal year, higher than their previous estimates. The monetary policy committee (MPC) of the Reserve Bank of India (RBI) forecast inflation at 5.1% in 2023-24. To be sure, inflation averaged 4.6% in the June quarter, the same as what the central bank forecast. Inflation stood at 4.3% in May, a near 25-month low.
Denne historien er fra July 14, 2023-utgaven av Hindustan Times.
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