Retail Inflation Declines To 59-Month Low Ahead Of Key State Elections, Food Inflation Lowest Since June 2023

Year-on-year inflation rate based on the All India Consumer Price Index (CPI) number for the month of July was 3.54 per cent, the lowest in the last 59 months, almost five years.

Similarly, food inflation for July is the lowest since June 2023 with a year-on-year inflation rate based on the All India Consumer Food Price Index (CFPI) number at 5.42 per cent.

The corresponding inflation rate for rural and urban is 4.10 per cent and 2.98 per cent respectively. The corresponding food inflation rate for rural and urban is 5.89 per cent and 4.63 per cent respectively.

The declining inflation is notable because the Reserve Bank of India (RBI) kept the repo rate unchanged while states like Maharashtra, Haryana and Jharkhand are set to have assembly elections later this year.

There is a sharp drop in inflation from 5.1 per cent in the previous quarter and 7.4 per cent in July 2023. Also, during the month of July, there is a decline in inflation for all the groups.

A significant decline is in the vegetables, fruits and spices subgroup. However, pulse inflation continued to remain in double digits, with cereal prices also rising.