Retail and wholesale inflation acceleratedin July and the uptrend is likely to continue in the coming months, limiting the space for further monetary easing, says a Morgan Stanley report. According to the global financial services major, both CPI and WPI inflation have troughed in June and are expected to rise further in the coming months.
The wholesale inflation rose sharply to 1.88 per cent in July from 0.90 per cent in June 2017, mainly on account of turnaround in prices of food articles, especially vegetables. Retail inflation jumped to 2.36 per cent in the month, chiefly driven by hardening of prices of sugar and confectionery items, pan, tobacco and intoxicants .