According to the latest data released by the National Statistical Office (NSO) on Monday, India’s consumer-based price index, or retail inflation has surged to a 15-month high of 7.44% (YoY) in July over 4.87% in June.
Erratic monsoons over the past months attributed to a steeper-than-expected surge in the prices of vegetables. Inflation in consumer food price index inflation rose to 11.51% in July while inflation in the food and beverages basket jumped up to 10.57%.
Retail inflation in vegetables surged to 37.34% last month from a deflation of -0.93% in June.
Rural inflation stood at 7.63% while urban inflation stood at 7.20%, the data also highlighted.
The CPI based inflation breached the upper limit of the Reserve Bank of India’s (RBI) tolerance band of 2-6% after staying within for four consecutive months.
Last week, the Reserve Bank of India (RBI) raised its inflation forecast for the current financial year to 5.4% from 5.1% earlier, citing pressures from food prices.
In the July-September quarter, it now sees inflation at 6.2%, significantly higher than the 5.2% earlier forecast.
Earlier today, the statistics ministry released wholesale inflation data.
India’s wholesale prices remained in the deflationary zone for the fourth month in a row in July. Wholesale Price Index (WPI) inflation narrowed sharply to -1.36% last month from -4.12% in June.
Wholesale inflation in primary articles shot up to a 116 month high of 7.57% last month with wholesale prices in food articles jumping up to 14.25%.
Wholesale inflation in vegetables shot up to 62.12% in July from a deflation of -21.98% in June led by a spurt in prices of not only tomatoes but also onions and potatoes.
After trading in negative for most of the session, domestic equities ended flat in positive on Monday, ahead of July Inflation data.
