India and Romania report divergent economic growth and inflation trends

India reported a 7.8% real GDP growth for the April-June quarter of FY27, exceeding the 7.0% projection by the Reserve Bank of India. While the real growth figure is strong, the GDP deflator—measuring price increases across the economy—stood at 2.33%. This figure contrasts with other indicators, such as the wholesale price index, which averaged 9.3% year-on-year during the same period. Sector-specific inflation varied, with mining seeing a 25% increase and agriculture rising to 3.8%.

In Romania, factory-gate inflation eased to 8.8% year-on-year in July, down from double-digit levels seen in previous months. This moderation was driven largely by base effects, despite high energy costs. The National Bank of Romania has raised its full-year inflation forecast to 6.1%, citing expected elevations in fuel and electricity prices. While energy price growth decelerated to 10.0% year-on-year, prices remain significantly higher than 2021 averages.