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Higher food prices accelerate India’s retail inflation

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A rise in food and fuel prices led to a rise of 2.36 per cent in India’s retail or consumer price index (CPI) based-inflation in July, official data showed here on Monday.

According to the Ministry of Statistics and Programme Implementation, last month’s CPI inflation rose to 2.36 per cent from 1.46 per cent in June.

However, on a year-on-year (YoY) basis, the country’s July was lower than the 6.07 per cent CPI rate reported for the corresponding month of last year.

As per the ministry’s data, retail inflation in July was pushed higher by a rise in prices of cereals, milk-based products, meat and fish.

On a sequential basis, the Consumer Food Price Index (CFPI) rose by 3.21 per cent during the month under review when compared to June 2017.

The data on a YoY basis, showed that cereals prices in July edged higher by 3.97 per cent, and meat and fish recorded a sharp rise of 3.19 per cent.

Food and beverages during the month under consideration recorded a marginal rise of 0.43 per cent over the same month last year.

Among non-food categories, ‘fuel and light’ segment’s inflation rate accelerated to 4.86 per cent in July.

The rural CPI YoY ruled higher at 2.41 per cent, whereas in urban areas it was at 2.17 per cent.