India's July retail inflation accelerated to 4.45% due to higher food prices, up from 4.38% a month ago, a pace unlikely to alter the Reserve Bank of India's rate outlook.
The July inflation figure was largely in line with economists' expectations and marked the second consecutive month that inflation breached the RBI's 4% medium-term target. Food inflation climbed to 5.52% in July from 5.32% in June, driven by weak monsoon showers. Despite this, economists anticipate limited pass-through to consumers due to the absence of significant revisions in domestic retail fuel prices, even as transport inflation accelerated to 4.43% in July from 4.31% in June.
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