 "India's July inflation eases to 8-year-low at 1.55%, food prices negative")
India’s retail inflation, measured by the Consumer Price Index (CPI), cooled to 1.55 per cent in July, slipping from 2.1 per cent in June, official data showed on Tuesday. This marks the ninth straight month of easing prices, bringing the inflation well below the Reserve Bank of India’s mandated 2–6 per cent target range.
This is the lowest reading since June 2017, according to the Ministry of Statistics and Programme Implementation (MoSPI). Food prices contracted and core categories remained largely stable, official data showed on Tuesday.
The decline was driven by a favourable base effect and broad-based easing across categories such as pulses, transport and communication, vegetables, cereals, education, eggs, and sugar, the ministry said.
Food prices turn negative
Food inflation, as measured by the Consumer Food Price Index (CFPI), slipped further into deflation at -1.76 per cent in July, from -1.01 per cent a month earlier. This is the steepest fall since January 2019, with rural and urban food inflation at -1.74 per cent and -1.90 per cent, respectively.
Rural vs urban CPI-based inflation in July
Rural headline inflation cooled to 1.18 per cent in July from 1.72 per cent in June, while urban inflation eased to 2.05 per cent from 2.56 per cent the previous month. Rural food prices fell more sharply, with CFPI at -1.74 per cent compared to -0.87 per cent in June.
Healthcare, fuel inflation rise
Healthcare costs saw a slight rise with inflation edging up to 4.57 per cent in July from 4.38 per cent in June, while fuel and lighting also ticked higher to 2.67 per cent from 2.55 per cent.
Education, transport cost ease
Meanwhile, education slowed to 4 per cent from 4.37 per cent, and transport and communication recorded a steep fall to 2.12 per cent from 3.90 per cent.
Housing costs remained largely unchanged, holding steady at 3.17 per cent.
State-wise retail inflation in July
Kerala recorded the highest combined inflation in July at 8.89 per cent, far ahead of Jammu & Kashmir (3.77 per cent) and Punjab (3.53 per cent), which were in second and third position on the list, respectively.
In contrast, several states, including Assam, Telangana, and Odisha, experienced negative inflation, meaning overall prices fell compared with a year earlier.