Inflation likely rose in June, but below RBI target: report

'A good part of the inflation should be a lift up from food inflation. The pickup remained barely subdued in the grander scheme of things,' said Vishnu Varathan, an economist at Mizuho Bank. 'It has not really picked up in a way that's going to shake up markets or raise huge concerns for the RBI at this juncture,' he added. Some economists expect the central bank will cut rates in August for the fourth consecutive time since February to enhance liquidity after the government's annual budget last week lacked any direct steps to boost the economy. The fiscal deficit target for this financial year was reduced to 3.3 per cent from 3.4 per cent, and domestic borrowing was estimated at 7.1 trillion rupees. '(If) you are planning to spend more than what you have been indicating, that could potentially swell the deficit above the target,' said Prakash Sakpal, Asia economist at ING. 'If that is the case, that is going to be potentially inflationary,' he added. ... DailyhuntDisclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Dailyhunt. Publisher: Deccan Chroniclehttp://agapelove.jgospel.net/UserProfile/tabid/1241/userId/285305/Default.aspx

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