India's Retail Inflation Drops To 77-Month Low Of 2.1% In June

(MENAFN- KNN India) New Delhi, Jul 15 (KNN) India's retail inflation declined to a 77-month low in June, driven by a significant moderation in food prices, according to data released by the National Statistics Office on Monday.

The development has led some economists to suggest that the Reserve Bank of India's monetary policy committee may consider a rate cut during its August meeting.

Consumer price index inflation registered 2.1 percent year-on-year in June, down from 2.8 percent in May, marking a decline of 72 basis points.

This represents the lowest annual inflation rate since January 2019 and extends the moderation trend to eight consecutive months.

Food inflation, measured by the all-India consumer food price index, experienced a sharp decline of 205 basis points compared to May, falling to negative 1.1 percent in June.

This marks the lowest food inflation rate since January 2019, according to the statistics office.

Regional variations showed rural inflation at 1.7 percent in June, lower than urban inflation which stood at 2.6 percent.

Vegetable prices declined by 19 percent during the month, while pulses and related products fell by 11.8 percent. The food and beverages category recorded negative inflation of 0.2 percent.

Wholesale price inflation entered deflationary territory at negative 0.1 percent in June, according to separate data from the commerce and industry ministry.

The ministry attributed the negative inflation rate primarily to decreased prices in food articles, mineral oils, manufacture of basic metals, crude petroleum, and natural gas.

(KNN Bureau)

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