Inflation at 5-month low of 5.19% in July

Inflation dipped to a five month low of 5.19% in July mainly on account of decline in prices of some food articles, vegetables and protein rich items.

It was at 5.43% last month and 5.84% in July 2013.

Inflation in the overall food articles basket, which account for 14% of the total Wholesale Price Index (WPI), stood at 8.43%. It was at 8.14% in June.

Inflation in vegetables declined 1.27%, and for onion it was (-)8.13% on an annual basis in July, as per the WPI data released today.

However, potato prices shot up 46.41% and fruits 31.71% during the month. Rate of price rise in milk was at 10.46%.

Inflation in the egg, meat and fish category stood at 2.71% in July as against 10.27% in the previous month.

While the rate of price rise in pulses was 3.31%, it was at 4.46% for cereals. In rice it was 6.85% and wheat 1.02% in July.

Inflation in the manufactured products was at 3.67%, and non-food articles, which include fibre, oil seeds and minerals, at 3.32%.

Inflation in the fuel and power category, meanwhile, was down at 7.40% from the previous month.

The WPI inflation data was revised upwards for May to 6.18%, from 6.01% as per provisional estimates.

The Reserve Bank in its monetary policy review last week had cautioned that continued uncertainty over monsoon could stoke food inflation, but expressed the hope that government policies will improve supplies in the coming months. Retail inflation data for July, released earlier this week, showed a marginal inch up to 7.96%.