India’s inflation rises to 2.07 % in August, in line with expectations

After dilution for nine consecutive months, IndiaOn Friday, government data showed that consumer enlargement rose to 2.07 % in August, in line with analysts estimates.

The government said in a statement that the high inflation in August “was mainly attributed to an increase in enlarged vegetables, meat, fish, oil, fat, personal care and eggs,”

Food inflation decreased by 0.69 % year on an annual basis in August, slowing down the low food rate by 1.76 % in July, with mustard prices, and tomato prices rose.

The average estimates by the economists included in Reuters have linked the main inflation rate on an annual basis by 2.1 % after price growth in July reached 1.55 %-the lowest since June 2017-on the background of low food inflation.

Despite the rise of August, inflation in India hovers near the targeted inflation squad at the Indian Reserve Bank from 2 % to 6 %. Last month, the central bank expects the consumer price index to grow by 3.1 % for the financial year ending in March 2026.

Hanna Luchnica Shores, the head of the Asia Economics and the Pacific Economics in S., said.

Ben Agency readings offer the Central Bank Chamber to reduce monetary policy and curtains the impact of American definitions on the country’s growth.

“Inflation in India is still less than the direction, which is likely to support private demand and facilitate additional monetary policy by the Indian Reserve Bank, and partially reduces the impact of uncertainty related to tariffs on growth,” said Luchnica Shores.

In August, Washington imposed an additional 25 % tariff on Indian imports on New Delhi Petroleum purchases, raising its total duties to 50 %, out of the highest fees on any of Washington’s commercial partners.

This step is expected to fly 0.6 percentage points From the annual GDP in India for the fiscal year, according to a report issued by Goldman Sachs.

In an attempt to stimulate local consumption to compensate for the strike to exports, the government announced a widespread scope Commodity and services tax discounts On September 3. Consumer goods are expected to become fast -moving, cars and agricultural products, as soon as these discounts are valid on September 22.

Economists in City expect that the power power will improve for Indian families “to 0.7 % and 0.8 % of GDP in the fiscal year ending in March 2026.” They also see that the commodity and services tax cuts reduce inflation by 1.1 percentage points if the full tax reduction to consumers is transferred.

Many leading car companies, such as Tata Motors and Maruti SuzukiThe price cuts have already been announced, and the benefits of tax cuts for customers. Many consumer commodity companies, such as Hindustan Unileverand Colgate-Palmolive And Mars Wrigley, is also It is said Looking to cut prices.

Last month, the Indian economy rose faster than an annual rate of 7.8 % in the April neighborhood to June, supported by the manufacturing, construction and services sectors. Although nominal growth has shown signs of slowdown, the low level of inflation made the growth rate look stronger, Economists said.