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India's retail inflation in July jumps to 7.44% from 4.87% in June: Government Data

India's retail inflation in July jumped to 7.44 per cent from 4.87 per cent in June, government data showed on Monday. The inflation, based on Consumer Price Index (CPI), is now once again above the RBI's comfort band of 2-6%. The figures had stayed within the RBI's comfort zone for four straight months, dipping to an over two-year low of 4.25% in May 2023. However, in July, the spike in retail inflation came amid a surge in prices of tomatoes and other vegetables due to shortfall during the monsoon season.Previously, high inflation was recorded at 7.79 per cent in April 2022. The inflation in the food basket was 11.51 per cent in July compared to 4.55 per cent in June and 6.69 per cent in July 2022, as per the data. The retail inflation in vegetables year-on-year was 37.43 per cent while the rate of price rise in 'cereals and products' was 13 per cent, showed the data released by the National Statistical Office (NSO). The government has tasked the central bank to ensure retail inflation remains at 4 per cent with a margin of 2 per cent on either side.

from Times of India https://ift.tt/Dgrc5af

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