India CPI Inflation Falls to 3.54% in July from 5.08% in June

13 Aug 2024 , 07:35 AM

India’s headline inflation rate based on Consumer Price Index fell to a near five-year low of 3.54% in July from 5.08% a month before, data from the National Statistics Office showed.

The decline in primarily on account of statistical effect of higher base as inflation had risen to 15-month high of 7.44% in July last year because of a sharp surge in tomato prices.

This is the first time in nearly five years that the overall inflation has fallen below the Reserve Bank of India’s medium-term target of 4%.

Most experts see the inflation rate rising above 4% in August or September as the base effect turns unfavourable.

The decline in inflation in July would have been sharper had it not been for an increase in food prices, especially vegetables.

The vegetables index rose 14.1% on month in July, pushing the overall index up 1.4%.

Food inflation fell to 5.42% in July from 9.36% in June.

The core inflation, which excludes volatile food and fuel prices, rose to 3.4% in July from 3.1% in June.