Indian consumer inflation likely rose in July, notching a second consecutive month above the RBI's 4% medium-term target, as food prices edged higher, a Reuters poll showed.
Uneven rainfall across the country this year has hampered agricultural output, driving food costs higher. Indian households spend over 40% of their budgets on food.
Still, inflation remained within the Reserve Bank of India's (RBI) 2%-6% target range, so the central bank kept interest rates unchanged this week, as was widely expected. The RBI flagged adverse weather-related events and uncertainty around global energy markets as key risks to its inflation outlook.
