Consumer price inflation zooms to 2.36% in July

news
14 August 2017

India's consumer price inflation based on the consumer price index zoomed to 2.36 per cent in July 2017, up from 1.54 per cent in June, reversing a declining trend of the past three months. The spike was due mainly to a sudden seasonal spurt in the prices of fruits and vegetables and higher prices of some food articles.

The June figure of 1.54 per cent was the lowest point in the new series of consumer price inflation data with 2012 base released by the government.

The government is releasing consumer price inflation data since January 2012 based on combined data for rural and urban consumers.

The onset of monsoon generally exerts an inflationary pressure on the prices of essentials, including food, and lasts till rains end and fresh crop starts arriving in markets, say experts.

Consumer price inflation for the rural areas stood at 2.41 per cent in July 2017, against 1.52 per cent in June and 6.66 per cent in July 2016.

Consumer price inflation for the urban areas stood at 2.17 per cent in July 2017 against 1.41 per cent in June 2017 and 5.39 per cent in July 2016.

Food price inflation (combined) stood at (-) 0.29 per cent in July 2017 against (-) 2.12 per cent in June 2017 and 8.35 per cent in July last year.

Food price inflation for rural areas stood at (-)0.07 per cent in July 2017, against (-)1.62 per cent in June 2017 and 8.18 per cent in July 2016.

Food price inflation for urban areas stood at (-) 0.99 per cent in July 2017 against 3.62 per cent in June 2017 and 8.80 per cent in July last year.

If the trend continues, RBI's Monetary Policy Committee (MPC), which has a mid-term inflation target of 4 per cent, may have to think twice before easing liquidity further.





 search domain-b
  go