Lagatar24 Desk
The country’s retail inflation, measured by the Consumer Price Index (CPI), eased to 5.59 per cent in the month of July. Separately, India’s factory output, measured in terms of the Index of Industrial Production (IIP), witnessed a year-on-year growth of 13.6 per cent in June, two separate data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed on Thursday.
The retail inflation during the month of June was at 6.26 per cent.
This is the first time in three months that the CPI data has come below the Reserve Bank of India’s (RBI) upper margin of 6 per cent. Prior to this, the CPI came above the 6 per cent mark for two consecutive months. The government has asked the central bank to maintain retail inflation at 4 per cent with a margin of 2 per cent on either side for a five-year period ending March 2026.m The RBI, in its latest MPC meeting, raised the CPI inflation forecast at 5.7 per cent from 5.1 per cent estimated earlier during the ongoing financial year 2021-22 (FY22). It sees CPI inflation at 5.9 per cent in Q2, 5.3 per cent in Q3, 5.8 per cent in Q4 with risks broadly balanced. The CPI inflation for Q1 FY23 is projected at 5.1 per cent.
The Consumer Food Price Index (CFPI) or the inflation in the food basket, too slipped month-on-month to 3.96 per cent in July, from 5.15 per cent in June, the data revealed.
The fall in the food basket was mainly due to a dip in prices of vegetables that slipped (-)7.75 per cent and cereals and products which declined (-)1.75 per cent in July. Apart from this, sugar and confectionery too dipped (-)0.52 per cent. On the other hand, prices of oils and fats surged 32.53 per cent on year, the egg prices segment saw a rise of 20.82 per cent and that of pulses and products rose 9.04 per cent and fruits gained 8.91 per cent. Non-alcoholic beverages climbed 14.44 per cent.
Apart from food and beverages, the fuel and light segment rose 12.38 per cent in July, while clothing and footwear gained 6.46 per cent and the housing segment inched up 3.86 per cent.
