Indian CPI (Jul MM) 0.88% (Prev. 1.03%)

A softer month-on-month print, but the monthly figure is the less traded of the Indian CPI pair: it is the year-on-year rate that anchors the RBI's flexible inflation target and the one on which rate expectations reprice, so a note based on the m/m alone carries limited signal. Indian inflation episodes of this kind have tended to be driven disproportionately by the food component, which is volatile and weather-dependent, meaning single-month softness in the headline often says little about the underlying path and is frequently discounted by the central bank as supply noise. The case distinction that matters is food-led disinflation, which the RBI has historically looked through, versus core softness, which feeds the policy debate. The follow-ons are the y/y rate and the core breakdown, and then how the print sits relative to the RBI's own projection path heading into the next monetary policy committee decision, since the MPC has in the past erred on the side of caution even when inflation has undershot. Rates and the rupee typically respond more to the policy read-through than to the data point itself.