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LATEST NEWS UPDATES | Food Inflation Increases to 11.51% in July, Highest in 3.5 Years

Food Inflation Increases to 11.51% in July, Highest in 3.5 Years

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published Published on Aug 16, 2023   modified Modified on Aug 16, 2023

India's July consumer price food inflation has risen to 11.51 percent from a year ago, its highest rate in three and a half years. The last time food inflation was above this rate was in December 2019. The price of cereals, pulses, vegetables and spices helped push food inflation into double digits. The Consumer Price Index (CPI) for July is 7.44 percent, up from 4.87 percent in June. 

High food inflation hurts the general public as they have to spend a higher amount to purchase the same basket of food. However, it affects the poor disproportionately because they spend a higher porion of their earnings on food. The increase in inflation is also bound to make the Reserve Bank of India keep its benchmark interest rates high in order to tame inflation. This is bad news for the economy as borrowing costs for companies, homes, cars and education will be high. 

Please click here for Inflation press release


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