Retail inflation soars to 15-mnth high; exports contract for sixth month

https://www.business-standard.com/economy/news/double-trouble-retail-inflation-soars-to-15-month-high-exports-contract-123081400902_1.html

Excerpts

The Consumer Price Index (CPI)-based inflation rate jumped to 7.44 per cent year-on-year (Y-o-Y) in July from 4.87 per cent in the preceding month, data released by the National Statistical Office showed. This was sharply higher than analysts’ expectations and forecasts in Reuters poll (6.4 per cent) and Bloomberg survey (6.5 per cent). Retail inflation also breached the Reserve Bank of India’s upper tolerance level of 6 per cent for the first time in five months.

Separately, trade data released by the commerce ministry showed merchandise exports contracted for a sixth consecutive month in July, by 15.9 per cent Y-o-Y to $32.25 billion. Imports declined for a seventh month in a row, by 17 per cent to $52.9 billion, leading to a trade deficit of $20.7 billion.