Government gets Relief on Retail Inflation Front, Fall Recorded in July
Due to cheaper Fuel and power, the Consumer price index (CPI) -based retail inflation has come down. According to data from the Central Statistics Office, retail inflation has come down to 3.15 percent in July. Earlier in June, this figure was at 3.18 percent. In this regard, a decline of 0.03 percent has been recorded in a month. At the same time, in July 2018, the retail inflation rate was 4.17 percent. That is, there has been a decrease of more than 1 percent. Let us tell you that the government has given a target of keeping the central bank retail inflation within the range of 4 percent.
However, inflation in food items has increased. According to the data, the inflation in food articles was 2.36 percent in July, which is slightly higher than 2.25 percent in the previous month. At the same time, the inflation rate of vegetables decreased to 2.82 percent in July, while in June it increased by 4.66 percent. Similarly, the prices of pulses and its products have registered a rise of 6.82 percent in the month of July. It was 5.68 percent in June last month.
In case of fruits, there was a spurt in the price. Inflation rate of protein-rich foods like meat and fish was 9.05 percent in July this year, which is almost equal to 9.01 percent in June. However, in case of eggs, the inflation rate came down to 0.57 percent as against 1.62 percent in June last month. If we talk about the fuel and power category, the prices have fallen by 0.36 percent in the month of July compared to 2.32 percent in the previous month.
Aditi Nair, principal economist at rating agency Icra, said, "The reason for the slight drop in inflation based on consumer price index is the reduction in fuel and electricity prices. This situation is when the prices of food items have increased. In view of the flood situation in some states, careful attention needs to be paid to the trend of food prices. Due to this, prices of vegetables have gone up and sowing of kharif crops is delayed .. "Let us tell you that according to the data of the Reserve Bank of India inflation changes in the repo rate.