The worker is loading consumer goods to a wheelchair on the wholesale market in Calcutta in India, November 11, 2024.
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Inflation of India consumers continued to soothe in June, reaching lower than the expected 2.10%, government data showed on Monday.
The header inflation rate expanded its slide after a decline to the lowest level in May, because the increase in food prices is constantly decreasing. Economists surveyed by Reuters forecasted June inflation at 2.5%.
The consumer price indicator fell on the eighth month in a row in June.
In June, food inflation was -1.06%, compared to 0.99% in May.
Inflation data offer RBI more space to further relax their monetary policy, after its disturbed reduction of the rate by 50 base points in May.
Governor of RBI Sanjay Malhotra he said Let this record of wheat production and higher harvest of key impulses in the spring crop season “should provide adequate delivery of key foodstuffs”, increasing the perspectives of further decrease in food inflation.
“Supported by a good weather result, we expect inflation to be on average about 2.5% in the next six months. High base in the last three years, and strong cereal production will help maintain food inflation for longer,” HSBC said in the note 30 June.
“A good monsoon will help stop inflation, increase real salary and increase the shopping power of informal consumers of the sector,” said HSBC.
The increase in domestic consumption would accelerate the economy of India after it recorded a faster than the expected increase of 7.4% in the quarter of the march.
Malhotra warned, however, that this country must be careful of the weather -related uncertainty, as well as fears of tariffs and their impact on global prices of goods.
India negotiated with the US to conclude a trade agreement before the tariff term of President Donald Trump of August 1, in that the country would invite imports of 26%.
Indian media reported Last week, the trade delegation was to go to Washington for talks, after restarting the tariff letter to the countries at the beginning of last week.
At the beginning of this month, New Delhi proposed retaliation against the United States in the World Trade Organization, Reuters reported The saying that 25% Washington's tariff for cars and some car parts would affect $ 2.89 billion in India exports.