India: inflation rises to 4.45% in July due to onion and garlic

WHAT HAPPENED

India's inflation rose to 4.45% in July, up from 4.38% in June. Food prices increased by 5.52%: onion prices rose 22.5%, garlic 35.4%, and ginger 83.6% in a year.

WHY IT MATTERS

Food is making daily life more expensive, especially in rural areas, where inflation was 4.84%. Restaurants and hotels increased by 7.72%. To curb prices, the central bank may raise rates, making loans and mortgages more expensive.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, India combines growing consumption with a pressure that could slow it down: families are spending more on food, and companies will pay higher loans if rates increase. Inflation and central bank decisions will be key to following its economy.