India’s Consumer Price Index for July reduced to 4.17%, data released by the Ministry of Statistics and Programme Implementation showed on Monday. The Consumer Price Index inflation, which measures the change in retail prices, was 4.92% in June.
July is the ninth straight month in which inflation exceeded the Reserve Bank of India’s target of 4%.
Food inflation in July stood at a provisional 1.37%, down from 2.91% in June. Prices of vegetables fell 2.2% in July, compared to a rise of 7.8% in June. Price of pulses contracted 8.91% in July.
Government data on August 10 showed that India’s industrial output rose 7% in June compared to the same month last year. Output in all three sectors – manufacturing, mining and electricity – improved more than 6% as compared to the year-ago month.
On August 1, the Reserve Bank of India increased the repo rate by 25 basis points to 6.5% and the reverse repo rate to 6.25%. RBI Governor Urjit Patel had said that the decision was influenced by the rise in inflation over the last three months. The repo rate is the rate at which the RBI lends money to commercial banks in the event of a shortfall of funds. The reverse repo rate is the rate at which the central bank borrows money from commercial banks in India.
The Wholesale Price Index inflation and trade data for July will be announced on Tuesday.