News Brief
India’s Retail Inflation Slips To Eight-Year Low Of 1.55 Per Cent In July, Food Prices In Deflation
Inflation
India’s Consumer Price Index (CPI) dropped to an eight-year low of 1.55 per cent in July, easing from 2.1 per cent in June, according to official data released on Tuesday (12 August).
This is the lowest year-on-year inflation rate after June 2017.
The latest numbers continue a six-month run of inflation below 4 per cent, with the average since April remaining under 3 per cent.
Food prices stayed in deflation for the second month in a row, with the food index recording a steeper fall of 1.8 per cent compared with a 1.1 per cent decline in June, the sharpest drop since January 2019.
The decrease was largely led by lower prices of vegetables, pulses, cereals, eggs, sugar and transport.
Meat and fish prices also remained in negative territory for a fourth consecutive month. In contrast, fruit inflation rose to 14.4 per cent from 12.6 per cent in June, and oils and fats prices jumped 19.2 per cent.
Rural inflation eased to 1.18 per cent in July from 1.72 per cent in June, while urban inflation softened to 2.05 per cent from 2.56 per cent.
The Reserve Bank of India recently lowered its full-year inflation forecast to 3.1 per cent from 3.7 per cent, projecting 2.1 per cent in the second quarter, 3.1 per cent in the third, and 4.4 per cent in the final quarter of the fiscal year.
