Inflation Easing

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Data released on 13 August by the National Statistical Office (NSO) show that inflation has been easing and growth is beginning to gather momentum.
India’s benchmark inflation rate, as measured by the Consumer Price Index (CPI) grew at 6.7% on an annual basis in the month of July. This is 30 basis points — one basis point is one hundredth of a percentage point — lower than the June print of 7% and 90 basis points below the April peak of 7.8%.

To be sure, July was the seventh consecutive month when headline CPI reading was above 6%, which is the upper limit of RBI’s tolerance band under India’s inflation targeting framework.