New Delhi: Retail Inflation subsided to a three-month low in July behind the prices of moderation foods pushed it under the ribbon of the tolerance rate of the Bank of India (RBI), while the industrial output growth remained in two digits in June, although it was slower than expansion previous month.
Data issued by the National Statistics Office (NSO) on Thursday showed retail inflation, which was measured by the Consumer Price Index (CPI), up 5.6% annually in July, slower than 6.3% the previous month.
Urban inflation is higher at 5.8%, while rustic is 5.5%.
Food inflation and drinks slowed to 4.5% in July compared with 8.5% in July 2020 and 5.6% in June 2021.
Vegetable prices fell 7.8% during the month but the price of eggs, meat and fish, oil and fat remains very high.
Core inflation, which did not include food and fuel, slowed to around 6% from the previous month 6.2%.
Fuel inflation and light slowed slightly to 12.4% compared to 12.7% the previous month and 2.7% in the same month a year earlier.
These are mostly driven by high global crude prices and high domestic taxes and have the potential to maintain high price pressure.
Separate data by NSO showed industrial output in June increased by 13.6% compared to 16.6% contraction in June 2021 and was lifted below 28.6% in May.
The manufacturing sector rose 13% for a month compared to 17% contraction in June 2021.