A recent report from Deutsche Bank predicts that the recent 20% tariff hikes by India’s top telecom companies will increase core inflation by 0.20% in FY25. These hikes, effective from July, are anticipated to elevate month-on-month core inflation by over 0.85%. The report revises the FY25 core inflation forecast to 3.8% from an earlier 3.6%, excluding food and fuel prices. Concerns also include below-average monsoon rains impacting inflation trends. The Reserve Bank of India remains vigilant amid expectations of headline CPI inflation nearing 5% in June, driven by rising food prices.
Telecom Tariff Hikes Expected to Raise Core Inflation by 0.20% in FY25: Report
![](https://affairsace-media.s3.ap-south-1.amazonaws.com/2024/07/04084339/1709147633-5827-ezgif.com-avif-to-jpg-converter.jpg)