What is Inflation

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.

The balance of risk improved as downside risk to growth declined along with upside risk to inflation, according to Gaura Sengupta, chief economist at IDFC First Bank

Despite markets continuing to price in policy rate hikes over the next 6-12 months, the softer-than-expected tone of the policy has supported bond markets, said Deepak Agrawal, Kotak Mahindra AMC.

Minister of State for Finance Pankaj Chaudhary said in the Lok Sabha that the government has been actively undertaking a series of measures to control inflation

Most economists expect stance to remain 'neutral'

The liquor maker said premium demand remains healthy despite inflationary pressures and AI-driven employment uncertainty affecting sentiment in some consumer segments

The World Bank warned that a prolonged US-Iran conflict could slow global growth to 1.3% in 2026, while fuelling inflation, higher interest rates and debt pressures

Nabard's latest survey shows that rural income growth has slowed to a two-year low. The findings come as rural inflation reached 5% in June, compared with 4% in urban area

"We have to watch out for monsoon… how it progress because a significant population depends on agriculture," he said

RBI Governor Sanjay Malhotra said inflation risks remain elevated due to West Asia tensions, rising oil prices and the possibility of a weak monsoon, even as supply-side pressures dominate

The CBDT has raised the Cost Inflation Index to 384 for FY27, helping taxpayers compute inflation-adjusted long-term capital gains on eligible assets

The Cost Inflation Index for FY27 will apply from April 1, 2026, though indexation is now available only in limited cases involving certain land and building sales

A higher index means the inflation-adjusted cost of acquiring an asset will be higher than it was in FY26

Federal Reserve Governor Lisa Cook said inflation risks now outweigh labour market concerns and signalled she is prepared to act if disinflation does not resume soon

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