India's annual retail inflation (INCPIY=ECI) rose sharply to 7.44% in July from 4.87% the previous month.
Reuters Graphics"The spurt in CPI inflation in July 2023 was on expected lines, however, 7.44% retail inflation was totally unexpected," said Devendra Pant, economist at India Ratings.
Food inflation, which accounts for nearly half of the overall consumer price basket, hit a staggering 11.51% in June as compared with 4.49% in June.
Retail food inflation was at its highest since January 2020.
Even a moderate rise in food inflation tends to anger voters and Dhiraj Nim, economist at ANZ Research, said further measures may be required from the government.
Persons:
Devendra Pant, Research's Gaura Sen Gupta, Pant, Narendra Modi's, Dhiraj Nim, Nikunj Ohri, Chizu Nomiyama, Christina Fincher
Organizations:
REUTERS, DELHI, Reuters, Reserve Bank of India, ANZ Research, Thomson
Locations:
Kolkata, India