India's consumer inflation breaches RBI's upper tolerance level
Inflation hits 354 percent in July
RBI likely to hike interest rates in August
India's consumer price index (CPI) inflation breached the Reserve Bank of India's (RBI) upper tolerance threshold of 6 percent for the third consecutive month in July, data released by the Ministry of Statistics and Programme Implementation showed on Monday.
The CPI rose 354 percent in July from a year earlier, the highest level since March 2012. It was also higher than the 296 percent increase recorded in June.
The rise in inflation was driven by higher food and fuel prices. Food inflation rose to 342 percent in July from 254 percent in June, while fuel inflation rose to 116 percent from 108 percent.
The RBI is likely to hike interest rates in August in an effort to tame inflation. The central bank has already raised rates by 40 basis points since May.
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