Unexpected surge in Aug inflation dashes rate cut hopes

India's WPI inflation in August was a higher-than-expected at 7.55 percent, dampening hopes of a rate cut on Monday when the RBI meets to review its policy.

This compares with provisional figure of 6.87 percent for July and 9.78 percent during the corresponding month of the previous year.


A Reuters poll had estimated the inflation at 6.95 percent. The government also revised upwards June inflation to 7.58 percent from 7.25 percent.

The inflation in food articles group came in at 9.14 percent as against 10.06 percent the month ago.

Fuel and power group witnessed a surge in inflation to 8.32 percent from 5.98 percent a month ago.

CNBC-TV18 reported that core inflation for the month came in at 5.56 percent against 5.44 percent a month ago.

The release of the inflation figures coincided with a comment from RBI deputy governor KC Chakrabarty reiterating the central bank's focus on taming inflation.

Full press release here.

Updated Date: Dec 20, 2014 12:56 PM

Also Watch

IPL 2018: Royal Challengers Bangalore eye revival against Chennai Super Kings as 'Cauvery Derby' comes back to life
  • Thursday, April 26, 2018 In the Kanjarbhat community, a campaign against 'virginity tests' is slowly gaining ground
  • Tuesday, April 24, 2018 It's A Wrap: Beyond the Clouds stars Ishaan Khatter, Malavika Mohanan in conversation with Parul Sharma
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See