The annual consumer price inflation rose to 2.36 percent in July after easing for three straight months, as a decline in food prices slowed sharply, government data showed on Monday. However, on a year-on-year (YoY) basis, the country’s July retail inflation was lower than the 6.07 per cent CPI rate reported for the corresponding month of last year.
As per the ministry’s data, retail inflation in July was pushed higher by a rise in prices of cereals, milk-based products, meat and fish. On a sequential basis, the Consumer Food Price Index (CFPI) rose by 3.21 per cent during the month under review when compared to June 2017.
The data on a YoY basis, showed that cereals prices in July edged higher by 3.97 per cent, and meat and fish recorded a sharp rise of 3.19 per cent. Food and beverages during the month under consideration recorded a marginal rise of 0.43 per cent over the same month last year.
Among non-food categories, ‘fuel and light’ segment’s inflation rate accelerated to 4.86 per cent in July. The rural CPI YoY ruled higher at 2.41 per cent, whereas in urban areas it was at 2.17 per cent.
Wholesale inflation also rose sharply to 1.88 per cent in July — first rise in five months — as some food articles turned dearer even as the industry pitched for cut in interest rates citing weak industrial activity. Inflation based on the wholesale price index (WPI) was 0.90 per cent in June 2017 and 0.63 per cent in July 2016.
The doubling in the rate of inflation in July, the first month of the Goods and Services Tax (GST) rollout, was mainly on account of turnaround in prices of food articles, especially vegetables. WPI inflation has been in decline since March.
Food articles, which were witnessing deflation for the previous two months, saw inflation go up to 2.15 per cent in July on a yearly basis, the official data released today showed.
Meanwhile, India’s export grew by 3.94 per cent on a yearly basis to USD 22.54 billion in July on account of rise in shipments of petroleum, chemicals and marine products, official data released showed.