July 13 (Reuters) - India's retail inflation accelerated to 4.38% in June, government data showed on Monday, breaching the central bank's 4% target for the first time in 17 months and setting the stage for an interest rate hiking cycle.
The print was above the 4.3% forecast in a Reuters poll of economists and was also the highest since India revamped the consumer price index in January.
COMMENTARY:
SAKSHI GUPTA, PRINCIPAL ECONOMIST, HDFC BANK, GURUGRAM
"Inflation inched up by close to 45 basis points in June to 4.4%, mainly driven by some increase in food and fuel inflation as the impact of a revision in petrol and diesel prices played out. However, lower gold prices pulled down the increase in the headline print.
The print was above the 4.3% forecast in a Reuters poll of economists and was also the highest since India revamped the consumer price index in January.
COMMENTARY:
SAKSHI GUPTA, PRINCIPAL ECONOMIST, HDFC BANK, GURUGRAM
"Inflation inched up by close to 45 basis points in June to 4.4%, mainly driven by some increase in food and fuel inflation as the impact of a revision in petrol and diesel prices played out. However, lower gold prices pulled down the increase in the headline print.
4 months ago
