{"id":105821,"date":"2016-08-12T23:12:52","date_gmt":"2016-08-12T23:12:52","guid":{"rendered":"http:\/\/151.106.38.4\/2016\/08\/12\/indias-july-retail-inflation-stays-above-rbi-target\/"},"modified":"2016-08-12T23:12:52","modified_gmt":"2016-08-12T23:12:52","slug":"indias-july-retail-inflation-stays-above-rbi-target","status":"publish","type":"post","link":"https:\/\/nagalandpost.net\/index.php\/2016\/08\/12\/indias-july-retail-inflation-stays-above-rbi-target\/","title":{"rendered":"India\u2019s July retail inflation stays above RBI target"},"content":{"rendered":"

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Soaring food prices in July kept India\u2019s headline inflation above the Reserve Bank of India\u2019s (RBI) near-term target, underscoring the challenge facing the next central bank governor.<\/div>\n
Consumer prices rose at a faster-than-expected pace to 6.07 percent last month from a year ago, up from June\u2019s 5.77 percent annual gain, government data showed on Friday. Economists surveyed by Reuters had expected retail inflation to come in at 5.90 percent.<\/div>\n
It is the fourth straight reading above the RBI\u2019s target of 5 percent by March 2017.<\/div>\n
At his last monetary policy review on Tuesday, central bank chief Raghuram Rajan left key interest rates unchanged, flagging upside risks to the inflation target.<\/div>\n
The former International Monetary Fund chief economist is due to step down as RBI governor on Sept. 4, after a three-year term, to return to academia.<\/div>\n
While Prime Minister Narendra Modi\u2019s government has yet to pick a successor, it has bound the next governor with Rajan\u2019s retail inflation target of 4 percent, with a band of 2 percent on either side, for the next five years.<\/div>\n
Retail food prices surged 8.35 percent year-on-year last month, much faster than a 7.79 percent annual increase in June.<\/div>\n
Above-average monsoon rains this summer have raised hopes of a boost to farm output and an ensuing drop in food inflation. Already, there are signs vegetable prices are edging down.<\/div>\n
However, the outlook for core inflation remains uncertain due to a shrinking output gap and an expected pickup in demand-driven price pressures, following full implementation of a major hike in government salaries and pensions.<\/div>\n
Pay hikes are also expected to make it tougher for Finance Minister Arun Jaitley achieve the fiscal deficit target of 3.5 percent of GDP in the current fiscal year.<\/div>\n
Jaitley told lawmakers on Friday he would need more money to cover the payout.<\/div>\n
A looser fiscal stance could boost inflationary expectations, economists warn, as the government pays higher wages and keeps capital investment high in the hope that private sector activity will then pick up.<\/div>\n
\u201cThe central bank faces a difficult task in meeting its inflation targets,\u201d said Shilan Shah, India economist at Capital Economics.<\/div>\n
\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Soaring food prices in July kept India\u2019s headline inflation above the Reserve Bank of India\u2019s (RBI) near-term target, underscoring the challenge facing the next central bank governor. Consumer prices rose at a faster-than-expected pace to 6.07 percent last month from a year ago, up from June\u2019s 5.77 percent annual gain, government data showed on Friday. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-105821","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/105821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/comments?post=105821"}],"version-history":[{"count":0,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/105821\/revisions"}],"wp:attachment":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/media?parent=105821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/categories?post=105821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/tags?post=105821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}