CPI-based inflation rate increased to 4.8 per cent in June 2023, from 4.3 per cent in May, primarily on account of an increase in food inflation
Another worry for the RBI and the markets are the monsoons back home (intensity and spatial distribution)
The IIP growth rate for the month of May came at 5.2%, according to the government release
It was for the second month in a row that retail inflation remained within the RBI's comfort zone of below six per cent
CLOSING BELL ON JUNE 12, 2023: The Nifty reclaimed the 17,600 level; In the broader market, BSE Midcap index advanced 0.5 per cent, and Smallcap added 0.7 per cent on Monday.
'Banks have been cautious. I think there is still some amount of liquidity sitting there', said Das
Economic growth projections were retained at 6.5%, with first two quarters expected to deliver slightly more. Second half likely to yield moderately less pace of growth than assessed in April
RBI monetary policy: In April, the MPC had decided to pause the repo rate hike for the first time since May 2022
The core inflation has remained stuck in the range of 5-6.6 per cent for over two years
The food inflation also eased to 3.84% in April
According to govt data, urban inflation in March was 5.89%, while rural inflation was 5.51%
Consumer prices rose 6.44% in February, breaching the Reserve Bank of India's target ceiling
Retail inflation: his is lower than 6.52 per cent in January but still above the Reserve Bank of India's upper tolerance limit of 6 per cent
"We expect CPI inflation to average 5.5 per cent (6.7 per cent in F23 estimates) and the current account deficit to track at 2.5 per cent of GDP in F24 (2.9 per cent in F23 estimates)"
IMF added that the central banks across Asia need to stay 'alert' as the core inflation is still high, and the re-opening of China's economy may push inflation up due to higher demand
In a recent report the RBI said that the retreat of inflation is expected to be stubborn and beset by supply shocks in the upcoming year
Latest reading has increased uncertainty
Maintain adequate allocation for equities in long-term portfolios for financial security
In December, the CPI-based inflation was 5.72% with core inflation at 6.10%
Core inflation, which excludes volatile food and fuel prices, was still running at 6.10% in December, which makes it difficult for the RBI to look away and to keep the tightening cycle going