India just saw inflation hit its lowest in years
India just saw wholesale inflation hit -0.58% in July 2024, among the lowest levels in almost two years.
Retail inflation is also way down at 1.55%, the lowest since 2017.
Cheaper food and fuel are the big reasons, with a strong spring harvest helping keep prices stable even after an uneven monsoon.
Food, transport costs are big reasons
Food prices actually fell by about 1.7% for wholesalers and nearly 1.8% for shoppers, especially on staples like pulses and veggies.
Even transport and communication costs have cooled off a bit.
Interest rates on hold for now
With inflation this low, the Reserve Bank of India isn't changing interest rates for now.
They've even lowered their full-year inflation forecast to 3.1%.
But heads up: prices may climb again later this year, possibly going above RBI's target by early FY27 (April-June 2026).
Core inflation stays stable
Core wholesale inflation (which leaves out food and fuel) ticked up slightly but remains manageable around 1.5%.
The RBI says risks from global trade are "evenly balanced," so they're keeping a close eye but staying optimistic about where things are headed.