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India's Annual Retail Inflation Eases to 3.54% in July

Key Points

• Annual retail inflation eased to 3.54% in July from 5.08% a month ago.
• This is the lowest inflation rate since August 2019.
• Economists had forecast inflation at 3.65%.

Details

The latest inflation print is a provisional estimate based on the All India Consumer Price Index (CPI) number for July 2024. The government will release the final inflation data on August 15, 2024.

The decline in inflation is primarily attributed to a fall in food prices. Food inflation eased to 2.38% in July from 3.84% in June. Vegetable prices, in particular, declined by 9.4% month-on-month.

The Reserve Bank of India (RBI) has been closely monitoring inflation trends. The central bank has raised interest rates by 190 basis points since May 2022 to curb inflation.