New Delhi, August 12: India’s retail inflation rate increased slightly to 4.45% in July, up from 4.38% in June, according to the Ministry of Statistics and Programme Implementation. The ministry released this data on Wednesday.
In rural areas, the retail inflation rate stood at 4.84%, while in urban areas, it was lower at 3.96%.
Food inflation in July was recorded at 5.52%. Specifically, rural food inflation was 5.79%, compared to 5.05% in urban areas.
Notably, the price of potatoes decreased by 16.56% year-on-year. Other significant declines included a 6.72% drop in the prices of jeeps and motor cars, 5.52% for okra, 5.27% for peas, and 4.59% for tomatoes.
Conversely, inflation rates for silver jewelry soared by 109.84%, ginger by 83.62%, garlic by 35.36%, and gold/diamond/platinum jewelry by 32.98%. Onion prices also saw a rise of 22.54%.
Additionally, the inflation rate for food and beverages was 5.24%, while it was 4.79% for pan, tobacco, and intoxicants. Inflation in textiles and footwear was 3.38%, health at 1.34%, transportation at 4.43%, and educational services at 3.64%.
The states with the highest retail inflation in July included Telangana at 6.32%, Andhra Pradesh at 5.72%, Tamil Nadu at 5.44%, Madhya Pradesh at 4.91%, and Karnataka at 4.89%.
Earlier this month, the Reserve Bank of India (RBI) projected a retail inflation rate of 5% for the fiscal year 2027, noting that global instability could lead to short-term inflation increases.
RBI Governor Sanjay Malhotra stated that after remaining below the central bank’s target of 4% for 16 consecutive months, retail inflation rose to 4.4% in June. He also mentioned that the inflation rate in the first quarter was 30 basis points lower than the RBI’s previous estimates, indicating limited pressure from input costs.
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