Retail inflation drops to 3.54% in July, reaching nearly 5-year low
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Retail inflation in India dropped to 3.54% in July, marking the first time in nearly five years that it has fallen below the Reserve Bank of India's (RBI) 4% target, according to government data released on Monday.
This decline is attributed to a significant easing in food prices.
In comparison, the Consumer Price Index (CPI) based retail inflation stood at 5.08% in June 2024 and was much higher at 7.44% in July 2023. The inflation rate within the food basket specifically fell to 5.42% in July, down from 9.36% in June, as reported by the National Statistical Office (NSO).
The last instance of inflation being below 4% was in September 2019.
The RBI is mandated by the government to maintain CPI inflation at 4%, with a permissible fluctuation of 2% on either side.