India and Argentina Report July Inflation Increases

India and Argentina reported July inflation data showing price increases, though the two nations face different economic pressures. In India, retail inflation rose to 4.45%, the highest level in 19 months. This increase was driven primarily by transport costs and the price of food staples, specifically ginger and garlic. This is the second consecutive month that inflation has exceeded the 4% target set by the Reserve Bank of India.

To address these pressures while balancing weakening economic momentum, the Monetary Policy Committee of the Reserve Bank of India has held the repo rate at 5.25%. The committee is expected to maintain this rate through the second quarter of FY27.

In Argentina, inflation rose to 2.1% in July, ending a three-month period of slowing prices. While the year-on-year inflation rate remains high at 33.8%, economists point to a core inflation rate of 1.8% as a positive indicator of an underlying disinflationary trend.