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LATEST NEWS UPDATES | Retail inflation eased to 5.6% in July

Retail inflation eased to 5.6% in July

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published Published on Aug 12, 2021   modified Modified on Aug 13, 2021

-The Hindu

Industrial output growth halves from 28.6% in May to 13.6% in June

Retail inflation cooled slightly to 5.6% in July, slipping below the central bank’s upper tolerance threshold of 6% for the first time in three months, even as industrial output growth halved from 28.6% in May to 13.6% in June, as base effects from the national lockdown of 2020 begin to fade.

Food prices at the consumer level played a substantive role in moderating the pace of price rise in July, with the National Statistical Office (NSO) estimating an inflation of 3.96%, compared to 5.15% in June. Vegetables, fruits, oils and fats, pulses, sugar and spices experienced significant tempering in inflation, an indication that some of the government measures to correct edible oil and pulses prices are kicking in.

The respite notwithstanding, DBS Group Research economist Radhika Rao said, latent pressure points remained, as inflationary expectations have firmed up further as per the latest survey by the central bank.

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The Hindu, 12 August, 2021, https://www.thehindu.com/business/Economy/indias-retail-inflation-eases-in-july-to-559/article35880275.ece?homepage=true


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