MUMBAI (Reuters) - India's annual consumer price inflation edged up to a slightly stronger-than-expected 5.77 percent in June, mainly driven by higher food prices compared with 5.76 percent in May, government data showed on Tuesday.
COMMENTARY
A. PRASANNA, ECONOMIST, ICICI SECURITIES PRIMARY DEALERSHIP LTD, MUMBAI:
"CPI inflation is slightly higher than expectation driven by food prices.
"However core inflation has softened a tad more to 4.52 percent from our anticipated 4.60 percent. This is a mildly positive data to the extent that it is driven by mainly food prices.
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"However, it will take a few more months before CPI peaks out. As such our expectation is for RBI to maintain status quo on rates given 5 percent CPI target for March 2017.
"Having said that clarity on the next RBI governor and composition of monetary policy committee would have a significant bearing on how monetary policy stance evolves going ahead."
(Reporting by Suvashree Dey Choudhury; Compiled by Rafael Nam)
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