India’s consumer price index (CPI)-based headline retail inflation cooled to a nearly five-year low of 3.54 per cent in July on the back of a sharp reduction in food prices. Separately, the growth in the index of industrial production (IIP) declined to a three-month low of 4.2 per cent in June from the upward-revised figure of 6.2 per cent in the preceding month.
The data released by the National Statistical Office (NSO) on Monday showed that food inflation declined to 5.42 per cent in July from 9.36 per cent in June, driven by deceleration in the prices of cereals (8.14 per cent), fruits (3.84 per cent), and vegetables (6.83 per cent). Though the prices of pulses (14.8 per cent) decelerated compared to the preceding month, they still saw a double-digit rise in July.
Earlier, in the customary post-monetary policy committee (MPC) statement, the Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday said that the headline inflation, after remaining steady at 4.8 per cent during April and May 2024, increased to 5.1 per cent in June, primarily driven by the food component, which remains stubborn.
In IIP, the decline in growth was led by deceleration in manufacturing (2.6 per cent) and electricity (8.6 per cent) during June. Growth in mining, however, accelerated to 10.3 per cent during the month.
In the use-based categories, growth declined in all six categories.
First Published: Aug 12 2024 | 6:08 PM IST
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