Food inflation in July stood at a provisional 1.37 per cent.India's retail inflation rate eased to 4.17 percent in July after touching a five-month high of 5.0 percent in the previous month, government data showed on Monday, helped by smaller increases in food prices.Analysts polled by Reuters had forecast July's annual increase in the consumer price index at 4.51 percent, compared with June's 5.00 per cent.Rupa Rege Nitsure, Chief Economist, LT Finance Holdings, Mumbai"As per our expectations, headline CPI has significantly slowed to 4.17 percent, helped by a favourable statistical base for food articles, plus housing and some consumables.
However, elevated fuel prices have capped the decline.
Core inflation continues to stay sticky around 6.28 percent.
Support of favourable statistical base will continue until end December.""Going by today's print, I expect the RBI to take a pause until December at least.
However, INR depreciation remains a major risk to inflation besides the sticky core inflation."Tushar Arora, Senior Economist, Hdfc Bank, New Delhi"The comforting part is that the rise in food prices has been lower than the historical trend in the summer months.
The worrisome part is that core inflation continues to be high.
RBI is taking a long-term perspective But the long-term risks are still very much there.
Thus, another rate hike is still on the table in my view." Thomson Reuters 2018(Except for the headline, this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)