Bank of America Global Research (BofA) analysts boosted India’s retail inflation projection for FY22 by 30 basis points to 5.3 percent, with pricing pressures expected to moderate this month on an annualized basis.
“”Inflation to ease to 5.6 percent in July on year, despite concerns surrounding food inflation and higher global oil prices,” “Inflation to ease to 5.6 percent in July on year, despite risks around food inflation and higher global oil prices,” Nonetheless, the RBI is unlikely to be concerned at this time and will look over the “temporary hump” because present inflationary pressures are still primarily supply-driven, according to House. The next MPC decision is due on August 6.”
USD/INR is currently trading around 74.60, having been rejected at higher levels due to the dollar’s strength fueled by a jump in US inflation./n
