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Inflation may rise in the country due to Ambani-Mittal-Birla, read this report

Sagar Patel

By Sagar Patel

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Inflation in the country may rise due to the increase in tariffs of Airtel, Jio and Vodafone Idea.

Now, a decision by the country’s top businessmen Mukesh Ambani, Sunil Mittal and Kumar Mangalam Birla may trigger a rise in inflation. What is special is that all three of them own telecom companies. They have recently increased the telecom tariff by more than 20 percent. So the country’s core inflation may rise by 0.20 percent. The Deutsche Bank report raised its estimate of core inflation excluding fuel and food to 3.8 percent. Deutsche Bank said that apart from the rate hike, weak monsoon rains are also another factor that could trigger a rise in inflation. We also tell you what kind of report Deutsche Bank has submitted.

Core inflation will rise

The Deutsche Bank report said that the impact of the telecom tariff hike will start becoming visible from July and this increase alone will push up core inflation by over 0.85 per cent on a monthly basis. It said that overall, core inflation is likely to rise by 0.20 per cent in FY25 due to the increase in telecom tariffs. The bank has therefore revised its core inflation estimate for FY25 to 3.8 per cent, when it was earlier an average of 3.6 per cent. What is special is that after a gap of over two and a half years, telecom companies have announced a price hike of over 20 per cent, initiated by the largest operator, Reliance Jio.

How high could inflation be in June?

Ahead of the release of official June retail inflation data on July 12, the report said that core inflation for June is expected to come in at 3.2 per cent, up 0.13 per cent from May. The report said that retail inflation figures are expected to be 4.96 per cent in the month of June, down from 4.75 per cent in May. The report said that CPI inflation in June would likely be close to 5 per cent due to increases in food and beverage prices, particularly vegetables. The Reserve Bank of India (RBI), which is tasked with keeping inflation at 4 per cent, also expects inflation to fluctuate during the year and particularly flags concerns on the food inflation front.

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Airtel and Vodafone Idea shares

If we talk about Airtel stock, it closed unchanged on Wednesday. According to BSE data, the company’s shares closed at Rs 1,420.35 with an increase of Rs 1.80. However, during the trading session, the company’s shares touched the day’s high of Rs 1,432.50. However, on the last trading day of last month, Airtel shares touched a 52-week high of Rs 1,539.10. Since then, Airtel shares have seen a fall of around 7 percent. On the other hand, Vodafone Idea shares have seen an increase of over two and a half percent. The company’s shares closed at Rs 17.46. On June 28, the company’s shares had touched a 52-week high of Rs 19.15. Since then, it has seen a fall of around 9 percent.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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