Particle.news
Download on the App Store
15 ARTICLES
·
19h ago

India Readies Repo Cuts with Inflation at Six-Year Low as Australia Eyes Fresh CPI Data

Subdued price pressures in India open the door to further repo cuts with Australia’s central bank pausing to review fresh CPI data before its August meeting.

Image
The RBA’s reading on inflation removes volatile items including food prices for the month. NewsWire/ David Crosling
People walk outside a shopping mall in the Sydney Central Business District, in Sydney, Australia, May 14, 2024. REUTERS/Jaimi Joy/ File Photo
Image

Overview

  • India’s June retail inflation fell to 2.10%, the lowest year-on-year rate since January 2019, prompting the finance ministry to signal scope for additional repo rate easing.
  • The finance ministry’s June review projects FY26 inflation undershooting the RBI’s 3.7% forecast, reinforcing support for continued monetary policy easing after 100 basis points of rate cuts since February.
  • An output boost from OPEC and its allies has kept global oil prices subdued, contributing to India’s easing headline inflation.
  • Australia’s trimmed-mean inflation slipped to a 3½-year low of 2.7% in the March quarter and headline CPI dropped to 2.1% in Q2, placing both measures within the RBA’s 2%–3% target range.
  • RBA Governor Michele Bullock described July’s rate hold as a question of timing and said further cuts are likely once Wednesday’s CPI release confirms disinflationary momentum.