Inflation surges beyond RBI’s tolerance band

• Retail inflation surged to 7.44% in July on an annual basis as against 4.8% in June. This is the first time in four months that inflation has exceeded the central bank’s target.
• The inflation levels for food & beverage surged to 10.57% from 4.63%. For cereals, the inflation rate increased to 13.04% from 12.71% in June.
• Food prices, which account for nearly half of the inflation basket, have soared in the last two months largely due to an erratic monsoon throughout the country.
• In particular. tomato prices at wholesale markets saw prices go up by more than 1,400 per cent in the past three months.
• The Reserve Bank of India had raised its inflation forecast in its Aug 23 meeting to 5.4%, up 30bps due to risks in the food inflation outlook.

External Link : https://economictimes.indiatimes.com/news/economy/indicators/indias-retail-inflation-surges-to-7-44-in-july-breaches-rbis-tolerance-limit-for-the-first-time-in-five-months/articleshow/102724790.cms