India's inflation likely to cross 4% mark

India's inflation likely to cross 4% mark

India's consumer price index (CPI) inflation is expected to breach the crucial 4% mark for the first time in 16 months.

A CNBC-TV18 poll estimates a rise to 4.24% in June, crossing the Reserve Bank of India (RBI)'s target.

The spike comes amid surging food costs and global fuel price adjustments impacting domestic markets.

Headline CPI expected to rise to 4.97%

The June CPI reading is significant as it is the first inflation print following a recent fuel price hike. It could provide insights into the inflation outlook for the coming months.

The headline CPI is also projected to rise from 4.78% in May to 4.97%.

Economists expect food prices, especially cereals, to remain under pressure due to El Nino concerns, possibly leading to further food inflation increases.