Inflation pressure may build up again after Oct as economy revives: Experts

Retail price inflation falling in July to a three-month law could be a blip that disappears with rising consumer demand.

India’s retail price inflation falling in July to a three-month low of 5.9 per cent may not last beyond October-November as consumer demand rises, supplies crimp and the low-base effect of 2020 wanes, experts have said.

The consumer price index (CPI)-based inflation rate moderated to come with the central bank’s monetray policy committee's ( MPC) tolerance limit due to a decline in the rate of price rise in food items, particularly sharpening deflation in vegetables. Economists believe that the MPC may not raise the policy rate until at least the third quarter of the current financial year since it seeks