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Indian government figures yesterday showed the country's headline inflation eased to 10 percent in July. This was mainly attributed to ample rainfall and the return of industrial expansion to normal levels.
Prices of food and manufactured goods both rose in June from a year earlier. But they were down from June's 14.6 percent and 6.7 percent. Fuel and power prices still rose 14.3 percent in July, just as they did in June. The better-than-expected data, together with June industrial production, eased some pressure off the country's central bank.
A Crisil chief economist says monsoon rains have helped cool demand for products like cement, and eased food prices.