Retail inflation to come down with easing of lockdowns: CEA Subramanian

Attributing the rise in inflation to supply-side frictions, Chief Economic Adviser K V Subramanian has exuded confidence that retail inflation will come down in the days ahead with the easing of lockdowns.

According to the government data, retail inflation rose to 6.93 per cent in July, mainly driven by rising prices of food items like vegetables, pulses, meat and fish.

However, wholesale price-based inflation declined 0.58 per cent in July, even as food items turned costlier.

"If you look at inflation...it's primarily because of those supply-side frictions, but as local lockdowns are actually being reduced, these frictions should basically go