Consumer price inflation declines to 9.86 per cent in July

Consumer price inflation based on the consumer price index declined marginally to 9.86 per cent in July, from 9.93 per cent (revised downwards from the provisional 10.02 per cent) reported earlier.

The downward momentum was due mainly to a decline in the prices of cereals and its products and spices. Prices of vegetables and fruits, however, remained high.

The general consumer price inflation for all groups and subgroups combined stood at 121.4, up 9.8 per cent compared to the level in the same month of the previous year, provisional figures released by the Central Statistical Office (CSO) showed.

The corresponding provisional inflation rates for rural and urban areas for July 2012 stood at 9.76 per cent and 10.10 per cent, respectively. Inflation rates (final) for rural and urban areas for June 2012 stood at 9.65 per cent and 10.44 per cent, respectively.

The all India indices (provisional) for the rural and urban groups for July 2012 stood at 122.6 and 119.9, respectively.

During July 2012, vegetable prices recorded the maximum increase of 27.33 per cent, followed by edible oils (17.37 per cent) and pulses and its products (12.49 per cent) on an year-on-year basis.