India July CPI rose 4.45% YoY, in line with forecasts and inside the Reserve
Bank of India’s 2–6% target band, reinforcing market bets that policymakers will
keep rates on hold. The print — July’s seventh consecutive month inside the
tolerance band — supports the RBI’s decision to hold the policy rate at 5.25%
for a fourth straight meeting and further cools expectations of an imminent
hike. June had briefly breached the RBI’s 4% level for the first time in 17
months. Policymakers say they need a clearer read on inflation’s trajectory and
composition before acting. ANZ economist Dhiraj Nim said this result “should not
cause policymakers concern,” noting price pressures ex-food and fuel are
building but are not rising in an uncontrolled way.
