CPI inflation eased to a 3-month low to return within RBI's tolerance band in Jul-21, coming in at 5.59% compared to 6.26% in Jun-21. The print was marginally below our expectations (pegged at 5.72%) but almost in line with market consensus (5.6-5.7%).
Download ReportJul 21 CPI Inflation: Back in the tolerance band
CPI inflation eased to a 3-month low to return within RBI’s tolerance band in Jul-21, coming in at 5.59% compared to 6.26% in Jun-21. The print was marginally below our expectations (pegged at 5.72%) but almost in line with market consensus (5.6-5.7%). The deceleration was predominantly an outcome of favorable base, even as sequentially prices rose by 0.74% in the month compared to 0.56% in Jun-21. Price pressures were broad-based, intensifying across all categories with the exception of food compared to previous month.