India's consumer price inflation seen easing at 5.59 per cent in July
13 August 2021
Consumer price inflation in the country, based on the consumer price index, eased to 5.59 per cent in July 2021 from 6.26 per cent in June, falling below the 4+/- 2 per cent ceiling set by the Reserve Bank of India after a short-run volatility.
Data released by the Central Statistics Office (CSO) showed that consumer price inflation that hit a high of 5.52 per cent in March showed a downward trend in April only to climb up to 6.30 per cent in May 2021. There was a slight decline in June to 6.26 per cent.
Consumer price inflation for rural areas stood at 5.49 per cent in July 2021 down from 6.16 per cent in June.
Consumer price inflation for urban areas declined to 5.82 per cent in July 2021 from 6.37 per cent in June.
Food price inflation rate eased to 3.96 per cent in July 2021 from 5.15 per cent in June.
Food price inflation for rural areas stood lower at 3.55 per cent in July 2021 against 5.02 per cent in June.
Food price inflation for urban areas eased to 4.56 per cent in July 2021 from 5.42 per cent in June.
The rising trajectory of global crude prices and a broad-based surge in international commodity prices and logistics costs is having an impact on core prices, although weak demand conditions may temper the pass-through to consumer inflation to some extent.