Inflation Eases to Six‑Year Low; RBI Likely to Cut Rates Again

Inflation in India is projected to have eased to a six-year low of 2.50% in June, down from 2.82%, as food prices declined following strong harvests and a favorable high base effect IndiatimesReuters. Core inflation rose slightly to 4.30%, while WPI inflation edged up to 0.52%. A Reuters survey of economists suggests that sustained low CPI could pave the way for more RBI rate cuts, though next moves hinge on monsoon stability and global energy prices. The RBI already delivered a substantial 50-bp cut in June and may maintain a neutral stance in the near term. Official data is due on July 14. As low inflation persists alongside sluggish domestic demand, analysts anticipate renewed monetary support aimed at catalyzing credit growth and investment.

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