India's 4.45% Inflation Rate Sets Stage for RBI Policy Shift

India's Consumer Price Index (CPI) report revealed inflation rose to 4.45% in July, slightly below expectations of 4.5%. The National Statistical Office attributed this increase to rising food prices, which hit a high of 5.52%

The Reserve Bank of India (RBI) is expected to take a cautious policy approach due to elevated inflation rates, potentially strengthening the rupee and weakening cryptocurrencies

Radhika RAO, Senior Economist at DBS Bank, said that 'India's July inflation outcome is unlikely to materially alter the policy calculus', as food prices are normalizing but at a gradual pace