Consumer price inflation eases to a 9-month low of 4.17% in July
14 August 2018
Consumer price inflation in India eased unexpectedly to a nine-month low in July due to a sharp decline in the rate of increase in prices of food and beverages.
Inflation based on consumer price index (CPI) eased to 4.17 per cent in July from 4.92 per cent in June while food inflation more than halved to 1.37 percent from 2.91 per cent, data released by Central Statistics Office (CSO) on Monday showed.
Annual rate of food price inflation, which accounts for about half of the consumer price index (CPI), eased to 1.37 per cent in July, compared with a 2.91 per cent rise in the previous month.
Consumer price inflation for the rural areas stood at 4.11 per cent in July 2018 against 4.93 per cent (revised) in June 2018 and 2.41 per cent in July 2017.
Consumer price inflation for the urban areas stood at 4.32 per cent in July 2018 against 4.85 per cent (revised) in June and 2.17 per cent in July last year.
Food price inflation for rural areas stood at 2.18 per cent in July 2018 against 3.66 per cent (revised) in June and 0.07 per cent in July last year.
Food price inflation for urban areas stood at 0.36 per cent in July 2018 against 1.56 per cent (revised) in June 2018 and (-) 0.99 per cent in July last year.
The more than expected decline has reduced the chances of further rate increases by RBI after two successive increases of 25 basis points each as it raised inflation outlook to 4.8 per cent in the second half (October-March) of 2018-19 from its earlier projection of 4.7 per cent.