Retail inflation eases to a five-year low of 3.54% in July, below RBI’s 4% target: Govt data

Retail inflation fell to the lowest in nearly five years in July, according to the All India Consumer Price Index (CPI) data released on Monday, August 12, 2024.

Combined inflation (rural and urban) declined to 3.54% in July 2024, compared to 7.44% in July 2023.

This was the first time in nearly five years that overall retail inflation fell below the Reserve Bank of India’s 4% inflation target.

What was the urban and rural inflation rate?

Urban inflation declined to 2.98% in July 2024, compared to 7.20% in July 2023.

Rural inflation declined to 4.10%, compared to 7.63% in July 2023.

How much was India’s food inflation in July 2024?

Food inflation in July 2024 was the lowest since June 2023.

The combined Consumer Food Price Index (CFPI), which shows food inflation also saw a sharp decline. It was 5.42% in July 2024, compared to 11.51% in July 2023.

Which food items saw the lowest inflation rate?

Spices saw the lowest inflation rate at -1.43%. This was followed by oils and fats at -1.17%, and non-alcoholic beverages, which saw a 2.29% increase.

Which food items saw the highest inflation rate?

Pulses saw the highest amount of inflation, increasing 14.77% year-on-year. This was followed by cereals, which saw an 8.14% inflation rate, and vegetables, which saw a 6.83% inflation rate.

What was the urban and rural food inflation rate?

Urban food inflation plummeted to 4.63% in July 2024, compared to 12.37% in July 2023.

Rural food inflation fell to 5.89%, compared to 11.04% in July 2023.

Which Indian state had the highest inflation rate?

Out of the 22 listed states/Union Territories in the CPI report, Bihar had the highest combined inflation rate of 5.87%. This was followed by Assam at 5.11%, and Uttar Pradesh at 4.57%.

Which Indian state had the lowest inflation rate?

Jharkhand had the lowest combined inflation rate of 1.72%, followed by Delhi at 2.06%, Chhattisgarh, at 2.16%, and Rajasthan at 2.53%.