Lower food prices eased India’s July retail inflation on a sequential basis.
Data furnished by the National Statistical Office (NSO) showed that the Consumer Price Index (CPI) slipped to 5.59 per cent last month from 6.26 per cent in June.
Region wise, the CPI Urban was at 5.82 per cent last month from 6.37 per cent in June, and the CPI Rural at 5.49 per cent in June from 6.16 per cent in June.
As per the NSO data, the Consumer Food Price Index fell to 3.96 per cent last month from 5.15 per cent in June. The CFPI readings measure the changes in retail prices of food products.
Notably, the macro-economic data assumes significance as it brings retail inflation mark in the range of the Reserve Bank of India’s set target of 2-6 per cent for CPI inflation.
The declining retail inflation rate reduces the chance of the RBI to further loosen up the monetary policy.