Telangana recorded the highest combined inflation among states in August at 6.27 per cent, while rural inflation exceeded urban inflation across most leading states.
Economists say the rate hike cycle could be shallow, with 50-75 bps hike in the current cycle
ACC, Ambuja Cements, India Cements and Shree Cement from the cement sector hit their respective 52-week lows.
Food inflation rose to 5.95 per cent in August from 5.52 per cent in July, while rural and urban headline inflation stood at 5.23 per cent and 4.31 per cent, respectively
Food inflation could remain elevated through the festive season as uneven monsoon rains, kharif crop uncertainties, El Nino risks and higher global food prices put pressure on household budgets
The cost of a vegetarian meal increased 1 per cent year-on-year and month-on-month to ₹29.5 per thali, the monthly report by the research arm of domestic rating agency Crisil said
From Subbarao and Rajan's crisis-era outreach to Patel's reticence and Das' Governor's Statements, the RBI's communication has evolved alongside India's economic challenges
The dollar index, which measures the greenback against a basket of currencies, rose 0.21% to 99.12 and was on pace for its biggest daily gain since August 6, with the euro down 0.16% at $1.1655.
Disaggregated figures for the top five categories showed month-on-month volatility.
Fuel and power inflation slowed sharply in July, offsetting higher inflation in primary articles and manufactured products, while core WPI rose to 8.2 per cent
WPI Food Index inflation rose to 6.65% in July from 6.14% in June, while fuel and power inflation eased to 20.05% from 27.41%
India's retail inflation rose for a second straight month above the RBI's 4% target in July, but remained within the central bank's 2-6% tolerance band.
While several firms have responded with calibrated price increases to protect margins, many signalled that further price escalations could follow
China's leaders, confronting a two-speed economy of strong factory output and exports but weak domestic demand, have pledged to bolster growth by accelerating fiscal spending
From a broader perspective, we continue to see value in areas like software where valuations remain reasonable relative to long-term growth potential, says Rajat Chandak.
Strong growth, above-target inflation projections and near-zero real interest rates suggest the RBI's dovish stance may not last, raising the prospect of higher rates ahead
RBI Governor Sanjay Malhotra said policy will remain guided by headline inflation and evolving growth dynamics, while reaffirming the central bank's data-dependent approach
The RBI's decision to hold rates reflects easing inflation risks for now, but rising price pressures could warrant policy tightening in the coming months
The RBI is more likely to use temporary liquidity absorption tools than tighten its policy stance or rates ahead, while system liquidity should improve as government spending accelerates.
Any further policy tightening is likely to remain contingent on a sustained rise in energy prices or evidence of broader, demand-driven inflationary pressures.