Categories: Business

retail inflation rose to 6.93 percent in July

Photo: GOOGLE

retail inflation rose to 6.93 percent in July

new Delhi. Due to the rise in prices of food items, the retail inflation rate has increased to close to 7 percent level in the month of July. According to the data released today, retail inflation during July was 6.93 percent. It was at 6.09 per cent in the month of June, which has been revised to 6.23 per cent in the figures released today. Retail inflation data was not released in April and May before June. In the month of April, the figures for March were revised from 5.91 per cent to 5.84 per cent.

The rise in retail inflation has been attributed to the rise in prices of food items. According to the CPI data, inflation in food articles was 9.62 percent in July. Whereas in the previous month, it was 8.72 percent in June. Food prices have seen a spurt in movement due to Corona crisis and monsoon. Due to the impact in the supply chain, there is an upward trend in prices due to the impact in the supply of food items. At the same time, there is a steady rise in fuel prices.

This is the second consecutive month when retail inflation has been above the Reserve Bank's satisfactory level. Currently, retail inflation is above the limit set by the Reserve Bank, with the central bank aiming to keep it below the 6 percent limit. The government has directed to keep retail inflation close to 4 per cent, with a possibility of a rise or fall of 2 per cent. That is, the target is to keep inflation within 2 to 6 percent. In the policy review, the Reserve Bank mainly decides whether or not to cut rates by considering inflation as the base.

This post was published on August 14, 2020 3:24 am

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