Monday, May 26, 2025 | 09:46 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

US inflation impact: Global recession fears to cool WPI inflation in India

Impact on CPI inflation to come later, rupee depreciation to negate some of this impact

cpi, wpi, inflation, retail, food, prices, vegetables, markets, shops
Premium

CPI inflation eased only marginally to 7.01 per cent in June from 7.04 per cent in the previous month, and WPI inflation eased slightly to 15.18 per cent in June

Indivjal Dhasmana New Delhi
Wholesale price inflation in India likely to dampen as 40-year high retail price inflation in the US may stoke fears of global recession via expected further monetary tightening by the Federal Reserve. The impact of global factors on retail price inflation will come with a lag effect.

However, the rupee depreciation will negate part of this effect due to expected capital outflow to safer places following recession fears and likely rate hikes by Fed, leading to higher returns for capital there. The rupee was trading at 79.80 against the US dollar in the morning trade on Thursday, compared to its