RBI warns food, fuel costs could reignite broader inflation

Most high-frequency indicators showed sustained manufacturing and services activity in July. Merchandise exports and imports experienced double-digit expansion, continuing Q1 momentum. Headline consumer price index inflation edged up, primarily due to supply-side pressures. Stable core inflation reaffirmed lower pass-through of cost pressures to consumers. Liquidity conditions eased, supporting credit growth and foreign capital inflows.