Consumer enlargement in India extends to more than 6 years lower

On Monday, government data showed that consumer in India continued to decline in June, reaching 2.10 % of the expected.

The main inflation rate extended its slide after its decrease to the lowest level in May more than six years in May with the low growth of food prices. The economists of Reuters expected inflation in June by 2.5 %.

The consumer price index decreased for the eighth month in a row in June.

Food inflation came in -1.06 % in June, compared to 0.99 % in May.

Inflation data provides more space for the Indian Reserve Bank to continue relaxing in its monetary policy, after reducing its huge price of 50 basis points in May.

Rabi Sanjay Malhotra He said in This production of wheat and harvesting from the main impulses in the spring crop season may record “adequate supply of major foodstuffs”, which increases the decrease in more decrease in food inflation.

“With the help of good weather results, we expect inflation to reach about 2.5 % over the next six months. High base over the past three years and strong grain production will help maintain low food inflation for a longer period,” HSBC said in a note on June 30.

HSBC said: “Good monsoon winds will help contain inflation, enhance real wages, and increase the purchasing power of consumers in the informal sector,” HSBC said.

The increase in local consumption will accelerate India’s economy after it has published a 7.4 % faster growth in the quarter ending in March.

However, Malhotra warned that the country needs to be monitored by the uncertainty associated with weather, as well as concerns related to definitions and their impact on basic commodity prices.

India was negotiating with the United States to conclude a trade deal before the deadline of President Donald Trump on August 1, and its failure, which would invite the country to import duties by 26 %.

Indian media reported Last week, a commercial delegation was expected to travel to Washington for talks, after Trump was restarted to send a tariff letter to countries at early last week.

New Delhi proposed this month in revenge duties against the United States at the World Trade Organization, Reuters mentioned, The saying of Washington’s tariff by 25 % on cars and some auto parts will affect $ 2.89 billion in India’s exports.