Inflation Seems Set To Track Lower Over Next Few Months: Experts

India's retail inflation rose 6.26 per cent in June from a year ago, government data released on Monday showed.

Analysts in a Reuters poll had predicted annual inflation at 6.58 per cent for the month.

Commentary

Upasna Bhardwaj, Senior Economist, Kotak Mahindra Bank, Mumbai

"The softer than expected inflation comes as a relief in an environment when the continuing accommodative stance remains a necessity to revive growth."

"We expect the MPC (Monetary Policy Committee) to draw comfort from relatively stable, although still high inflation"

Suvodeep Rakshit, Senior Economist, Kotak Institutional Equities, Mumbai

"The sequential increase in June prices has been much milder than the sharp spike seen in May. While the seasonal increase in vegetables prices continued along with eggs, and oils and fat, the increase in most other food items were much softer. Core inflation saw some price corrections in recreation and much milder increases across the board compared to May."

"Broadly, even as price correction was not yet visible, the price pressures are reducing. Inflation seems set to track lower towards 5.5 per cent over the next few months.".