BJP faces no-confidence vote, July inflation surge

The no-confidence vote that has been triggered against Prime Minister Modi's BJP is highly unlikely to lead to the fall of the government given the BJP's sizeable parliamentary majority. But it may make the ruling party even more reluctant to pursue contentious reforms ahead of next year's general election. Meanwhile, the continued sharp rise in food prices means that headline CPI inflation is all but certain to have breached the upper limit of the RBI's 2-6% target range in July.