Below is the Perspective on the July inflation data by Mr. Nish Bhatt, Founder & CEO, Millwood Kane International
“The July inflation has shot through the roof, at 6.93% it way above expectation. This is for the fourth month in a row that retail inflation has stayed above the 6% mark, which is higher than the RBI's range of 2-6%. Improvement in the supply chain of goods and a good and even monsoon for the rest of the season will be a savior.
Inflation for most components rose in July, with Vegetable (14%) and food price inflation (9.62%) contributing to the headline figure in a big way. High inflation despite lockdown, low fuel prices is a cause of worry, the high inflation may affect the central bank's ability to act on rates going forward.”
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