CPI inflation dips to nine-month low of 4.2% in July 2018

Core inflation flat at 6.3% in July 2018

The all-India general CPI inflation dipped to nine-month low of 4.17% in July 2018 (new base 2012=100), compared with 4.92% in June 2018. The CPI inflation figure for June 2018 is revised downwards to 4.9% from 5.0% reported earlier. The corresponding provisional inflation rate for rural area was 4.11% and urban area 4.32% in July 2018 as against 4.93% and 4.85% in June 2018.

The core CPI inflation was flat at 6.29% in July 2018 compared with 6.29% in June 2018. The cumulative CPI inflation jumped to 4.63% in April-July FY2019 compared with 2.24% in April-July FY2018.

Among the CPI components, inflation of food and beverages eased to 1.73% in July 2018 from 3.11% in June 2018. Within the food items, the inflation eased for vegetables to (-) 2.19%, fruits 6.98%, prepared meals, snacks, sweets etc. 4.46%, milk and products 2.96% and non-alcoholic beverages 1.40%. On the other hand, the inflation rose for pulses and products to (-) 8.91% cereals and products 2.92%, sugar and confectionery (-) 5.81% and spices 2.66%, while the inflation also moved up for egg to 7.41% and oils and fats 2.79% in July 2018.

The inflation for housing eased marginally to 8.30%, while that for miscellaneous items rose to 5.80% in July 2018. Within the miscellaneous items, the inflation for transport and communication increased to 6.55% and education 5.77%, while it has eased for health 5.80%, personal care and effects 5.26%, recreation and amusement 5.06% and household goods and services to 5.08% in July 2018.

The inflation for clothing and footwear was lower at 5.28%, while the CPI inflation of fuel and light increased to 7.96% in July 2018.

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