Inflation, Oil, and RBI's Tightrope: A Week of Countervailing Forces

India's retail inflation climbed to 4.45% in July, marking the ninth consecutive monthly increase and staying above the RBI's 4% target. Driven by stubborn food prices, this rise puts the central bank in a bind as it navigates between supporting growth and taming prices.

Behind the Data

Food inflation accelerated to 5.52% (up from 5.32% in June), with rural areas hit harder at 4.84% versus 3.96% in cities. Precious metals saw astronomical...