Retail inflation predicted to drop below 2.8% in June
India's retail inflation is expected to dip below 2.8% for June 2023, marking the second straight month under 3%.
That's five months running below the RBI's 4% target—a sign that price rises are slowing down.
Cheaper food is driving this trend
Cheaper food is driving this trend, thanks to a solid spring harvest—even though some veggies got pricier with the monsoon.
Tomatoes, potatoes, and onions are all much cheaper than last year (down by up to 27%).
In May, food inflation was just 0.99%, its lowest since late 2021.
Core inflation might tick up a bit
Core inflation (which leaves out food and fuel) might tick up a bit due to things like gold getting costlier, showing people are still spending.
But don't expect interest rate cuts from the RBI just yet—experts say they'll want to see if key veggie prices stay in check before making any moves.