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The data suggested a slow pickup in demand following the lowering of interest rates. As many as 16 of the 22 sub-sectors posted positive growth.
Retail Inflation remained within the RBI’s comfort zone at 3.78%...
Retail inflation, the primary gauge for the Reserve Bank of India, softened sharply in July to 3.78% from 5.40 % in June, much below the central bank's comfort zone, quelling immediate upside risks arising out of deficient monsoon estimates.
Price of pulses remained a worry as they shot up nearly 23% year-on-year in July, but food and beverages inflation remained benign at 2.9%.
Fresh Hopes: Another Rate Cut...
Belying concerns related to weak monsoon, food inflation softened.The sharp moderation in retail inflation is expected to trigger calls for a cut in interest rates. RBI left rates unchanged in its policy review earlier this month. The latest retail inflation data is much below the comfort level of RBI.