India's retail inflation dips below 7% in July; IIP growth in double digits

Consumer prices in the country grew 6.71 per cent in July, compared to the year ago period. Although retail inflation remained higher than the upper tolerance limit of RBI's target range of 2-6 per cent for a seventh straight month, it has dipped lower than 7 per cent for the first time in four months. Inflation has been receding for the last four months, it had touched a high of 7.79 per cent in April.

RBI, in its latest monetary policy committee meeting had raised the rates by 50 bps to 5.4 per cent--higher than the pre-pandemic level. Rates have increased 140 bps since June. 

The food inflation did not decline as fast and came in at 6.75 per cent.

The industrial production in June increased to 12.3 per cent, supported by a low base.

The data, released by the National Statistical Office on Friday, showed that the Consumer Price Index (CPI)-based inflation eased only marginally to 6.71 per cent in July from 7.01 per cent in the previous month, while the Index of Industrial Production (IIP) grew 12.3 per cent in June compared to 19.6 per cent in May.