InvestorQ : How do you read lower inflation at 6.71% for the month of July 2022?
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How do you read lower inflation at 6.71% for the month of July 2022?

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2 months ago
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CPI inflation for July 2022 came in at 6.71%, and that is a good 108 basis points lower than the peak of 7.79% seen in the month of April. Since then, inflation has consistently fallen. This is the third successive month inflation has tapered lower However, most analysts peg the CPI inflation around these levels for next two months. That is largely on account of lower than expected Kharif output this year due to weak acreage for most crops. However, July also marks the 7th consecutive month inflation is above the RBI outer limit of 6%.

July 2022 was the 34th successive month retail inflation was above the RBI median target of 4%, but that is a global problem. For now, the inflation control measures appear to be on target and that is good enough.

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