Retail inflation added to public concern, breaking 15-month record.

Retail Inflation - India TV Paisa
Image: File Retail inflation

Increase in retail inflation: Retail inflation hit a 15-month high of 7.44 percent in July as vegetables and other food items became more expensive. According to official data released on Monday, the consumer price index-based inflation rate stood at 4.87 percent in June. Whereas in July last year it was 6.71 percent. Earlier, the inflation rate was up to 7.79% in April 2022. According to National Statistics Office (NSO) data, food inflation stood at 11.51 percent in July as against 4.55 percent in June and 6.69 percent in July last year. On an annual basis, the inflation rate of vegetables stood at 37.43 percent while the prices of grains and its products increased by 13 percent.

There were hints from June.

The rate of retail inflation has reached alarming levels this time, at a pace that last month saw the inflation data fall within the satisfactory range. Retail inflation for agriculture and rural areas rose to 6.31 percent and 6.16 percent respectively in June. In May this year, the figure was 5.99 percent and 5.84 percent. The All India Consumer Price Index (CPI) for agricultural laborers and rural laborers increased to 1,196 points and 1,207 points respectively in June 2023. Both increased by 10 points on a monthly basis. In May 2023, CPI-AL was 1,186 points and CPI-RL was 1,197 points.

Fastest inflation since April

The government released consumer price index (CPI)-based inflation data last week. Retail inflation was 4.31 percent in May, up from seven percent in June 2022 a year earlier. According to government data, food inflation was 4.49 percent in June as against 2.96 percent in May. Food products account for almost half the weight in the CPI.

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