Retail inflation crosses 6%; at near two-year peak
Retail inflation crosses 6%; at near two-year peak
Retail inflation in India, or consumer price index (CPI), has risen to its 23-month peak and stood at 6.07%in July.
A Reuters poll of economists expected retail inflation to register at 5.90% last month from a year ago.
Analysts surveyed by Reuters expected output at factories, mines and utilities to expand 1.5% in June from a year earlier. In May, contrary to a predicted contraction, output rose 1.2%.
The industrial output data are based on an old series not reflected in India`s current gross domestic product figures. As a result, analysts set little store by those numbers as a guide to the economy`s broader health, Reuters said.
Reserve Bank of India (RBI) has set a target of 5% for retail inflation by March 2017. This is the fourth-month when inflation swam above the target.
Earlier this month, Government of India accepted an official inflation target of 4% (plus or minus 2%) for the next five years.
RBI will have to write a letter to the Government explaining causes if it misses this target.
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