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India's 'output gap' now positive, stagflation risk at only 3%: RBI bulletin
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RBI wrote in its State of the Economy article. The annual retail inflation sharply rose to a 15-month high of 7.44% in July from 4.87% the previous month, fuelled by a sharp jump in vegetable and cereal prices.
The figures breached the upper end of the RBI's inflation band of 2%-6% for the first time in five months, the RBI said. High-frequency food price data for August so far shows prices of cereals and pulses continued to increase this month, according to the RBIO bulletin.
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