India's Inflation Rate Expected to Breach RBI's Tolerance Ceiling Once More, Driven by Soaring Food Prices

India’s retail inflation rate is likely to breach the central bank’s 6% tolerance ceiling again due to sticky pulses and cereal prices even as vegetable price pressures ease, pushing the policymakers to raise inflation target in August meeting, Nomura said.

Over the past month, surging food prices have materially changed India’s inflation outlook, but the momentum in core inflation has fallen sharply, it added.

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