Retail inflation rises to 7.96% in July on costly vegetables

Retail inflation inched up to 7.96% in July, mainly due to higher prices of food items such as vegetables, fruits and milk. 

Retail inflation measured on consumer price index (CPI) in June was 7.46% (revised upwards from 7.31%). It was at 9.64% in the same month a year ago. Food inflation in July this year rose to 9.36% as against 7.97% in June, according to the government data released today. 

Vegetables were costlier in July with a double-digit price rise of 16.88%, a steep rise from 8.73% in June. Fruit prices went up to 22.48 in July as against 20.64% in June.
The rate of price rise in pulses was 5.85%. 

Inflation in milk and milk products stood at 11.26% during the month under review.

Amongst others, food and beverages saw a prices rise of 9.16% and non-alcoholic beverages prices at 6.35%. Inflation in cereals, however, eased marginally in July to 7.45% as against 7.6% in the previous month. 

Other protein rich items such as eggs, fish and meat too witnessed lower inflation in July over the previous month. Inflation in rural and urban areas in July was 8.45% and 7.42%, respectively. In June, it was 7.87% and 6.82%.

Commenting on the data, Samiran Chakraborty, Head of Research, Standard Chartered Bank (India), said the trend witnessed in prices is not comforting.