Consumer price index-based retail inflation eased marginally to 3.15 per cent in July on the back of softening fuel prices. Retail inflation was 3.18 per cent in June 2019, while it stood at 4.17 per cent in year-ago period. According to the Ministry of Statistics and Programme Implementation, the overall food inflation, measured on Consumer Food Price Index moved up to 2.36 per cent during July this year which was 2.25 per cent in June 2019.
The rate of price rise in vegetables softened to 2.82 per cent during the latest month as against a rise of 4.66 per cent in June, while prices of pulses and products went up to 6.82 per cent from 5.68 per cent. In fuel and light category, deflation was witnessed and it remained at 0.36 per cent as against a rise of 2.32 per cent a month ago. Currently, the retail inflation is well below the RBI’s comfort level. The government has asked the central bank to keep inflation in the range of 4 per cent.