Mr. Devarsh Vakil, Deputy Head Of Retail Research, HDFC Securities on Retail Inflation figures

India's consumer price rose 6.93% from a year earlier in July, faster than expected 6.26% and prior 6.23%. It has been two quarters since the inflation has remained well above RBI's tolerance level of 4% (+/-2%). The rise in inflation was on back of higher food and fuel price which rose 8.71% and 2.8% respectively. Rising food prices largely due to supply chain disruptions is the main reason behind such high reading. RBI had kept the interest rate unchanged on August 6 meeting and hinted higher inflation until September.

Source : Equity Bulls

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