Indian consumer inflation likely rose in July, notching a second consecutive month above the RBI’s 4% medium-term target, as food prices edged higher, a Reuters poll showed.

Food Prices Drive Inflation

Uneven rainfall across the country this year has hampered agricultural output, driving food costs higher. Indian households spend over 40% of their budgets on food.

The August 5 to 7 Reuters poll of 40 economists forecast the inflation rate, measured by the annual change in the consumer price index (CPI), rose to 4.50% in July from 4.38% in June.

Core inflation, which excludes volatile food and fuel components and better reflects underlying demand, is expected to have been 4.08% in July.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.