India's retail inflation drops to a nine-month low of 4.2% in July

Inflation moved closer to RBI's target of bringing it down to four per cent, raising hopes that MPC may not hike the policy rate for 3rd consecutive time in October

Retail price inflation dropped to a nine-month low of 4.17 per cent in July from 4.92 per cent in the previous month, a five-month high, prompting the monetary policy committee (MPC) to hike policy rate for the second time in a row.

Inflation moved closer to the Reserve Bank of India’s (RBI’s) target of bringing it down to four per cent, raising hopes that MPC may not hike the policy rate for the third consecutive time in October.

The inflation rate was revised down from provisional estimates of five per cent in June. The GST rate cuts on over 100