India consumer inflation extends slide to more than 6-year lows
On November 11, 2024, a worker puts his consumer goods into a supply car in Kolkata, India, in a wholesale market.
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On Monday, government data continued to ease India’s consumer inflation up to 2.10%in June.
As the title inflation rate continued to decrease in food prices, it fell for more than six years in May, and extended its slide. Economists participating in the survey by Reuters estimated June inflation as 2.5%.
The consumer price index fell for an eighth month in June.
Inflation data offers RBI more space to continue to loosen monetary policy after a large proportion of 50 basis points in May.
RBI Governor Sanjay Malhotra he said This wheat production and a higher key pulse harvest in the spring crop season “” “increasing the expectations of further decrease in food inflation,” key must provide the sufficient source of food foods “.
“With the help of a good air result, we expect inflation to be 2.5% for the next six months. A high base and strong grain production will help keep food inflation lower in the last three months.” He said.
“Good monsoon inflation will help to increase real wages, and to increase the purchasing power of informal sector consumers,” HSBC said. He said.
The increase in domestic consumption will accelerate the Indian economy after realizing a growth of 7.4% faster than expected in the quarter ended in March.
However, Malhotra warned that the country should pay attention to concerns about its impacts on tariffs and their effects on global commodity prices, as well as uncertainties of the country.
India negotiates the US and President Donald Trump to make a trade agreement before the tariff deadline dated 1 August, and failed to invite the country’s import tasks 26%.
Indian media reported Last week, after Trump restarted sending a tariff letter to countries at the beginning of last week, a trade delegation was expected to go to Washington for talks.
The new Delhi proposed retaliation tasks at the World Trade Organization against the United States at the beginning of this month, Reuters reported, It is to say that Washington’s 25% tariff on cars and some automobile parts will affect the exports of $ 2.89 billion.
