Retail inflation dips slightly to 3.15% in July despite costlier food items

Fuel and light saw deflation in July at 0.36 per cent against 2.32 per cent inflation in the previous month

The retail price inflation rate inched down to 3.15 per cent in July against 3.18 per cent in the previous month, owing to a fall in energy prices, justifying the Reserve Bank of India’s (RBI’s) monetary policy committee’s move to cut the policy rate for the fourth consecutive time. This was the first time in six months that the inflation rate dipped. 

The marginal dip was despite the food inflation rate rising slightly to 2.36 per cent from 2.25 per cent during this period, official data released on Tuesday showed. 

The inflation in vegetables came down to 2.82 per cent from 4.66