CPI Inflation Falls To Five-Month Low Of 6.71 Per Cent In July; Industrial Output Growth Moderates To 12.3 Per Cent In June

India's Consumer Price Index (CPI) inflation dropped to five-month low of 6.71 per cent in July on account of fall in oil and food prices.

However, even with the moderation, inflation was still above the Reserve Bank’s medium-term target of 2-6 per cent for a seventh straight month.

The downward trend in retail inflation can be attributed to price cuts on edible oil ranging from 0.4 percent to 6.4 percent, reports Economic Times.

Apart from oil, the decrease in commodity prices is also responsible for bringing down the inflation rate.

The Reserve Bank of India (RBI), during the MPC meeting this month, hiked the repo rate by 50 basis points while leaving its inflation forecast for the country unchanged at 6.7 per cent for the ongoing financial year 2022-23.

Meanwhile, industrial output growth moderated to 12.3 per cent in June from a year ago, compared with a 12-month high of 19.6 per cent in May, as a favourable base effect started to wane, according to the official data released on Friday (12 August).