MPC Minutes: Excess liquidity on RBI radar

India’s Consumer Price Index inflation surged to a 15-month high of 7.44% in July, shooting past the MPC’s tolerance band of 2-6%. The MPC’s inflation target is 4%. From mid-June to end-July, prices of tomatoes shot up nearly five times, with more than 80% of the rise occurring in the end of June and the first half of July, RBI executive director Rajiv Ranjan said.