Highlights:
- Retail inflation accelerated to a 15-month high of 7.4% in July.
- The jump was on account of high food inflation which contributed nearly 65% to the headline number.
- Core inflation eased to 5.1% from 5.3% in the previous month.
- Headline number is expected to remain elevated over the next two-three months.
- Uncertainties on the weather front and volatile crude oil prices pose upside risk to the outlook.
- RBI will closely monitor these evolving trends to decide on its future policy course.
