“INDIA’S RETAIL INFLATION FALLS TO 59-MONTH LOW”

Why in the news?

India’s retail inflation dropped to 3.54% in July 2024, the lowest in nearly five years, driven by a significant decline in vegetable prices and urban inflation.

INDIA’S RETAIL INFLATION FALLS TO 59-MONTH LOW - UPSCsource:wordpress

Retail Inflation Overview:

  • Retail inflation in India fell to 54% in July 2024, the lowest in nearly five years.
  • This decline follows a 08% inflation rate recorded in June 2024.
  • Urban inflation dropped to just under 3%, while rural inflation remained higher at 1%.

Food and Price Trends:

  • The largest drop in inflation was observed in vegetables, with rates falling to 8% in July from 29.3% in June.
  • Rural areas saw higher food inflation at 9%, compared to 4.6% in urban regions.
  • Pulses inflation stayed above 10% for the 14th consecutive month, at 77%, while meat, fish, and eggs experienced significant price increases.

Regional Disparities and Economic Concerns:

  • Among 22 states, seven recorded inflation higher than the national average, including Bihar (5.9%) and Assam (5.1%).
  • Jharkhand recorded the lowest inflation at7%, followed by Delhi at 2.1% and Chhattisgarh at 2.2%.
  • Economists highlighted concerns over persistent high inflation in personal care items and cereals, with cereal inflation remaining over 8%.
About Retail Inflation:

  • Retail inflation, also known as Consumer Price Index (CPI) inflation, measures the change in retail prices of goods and services that households purchase for daily consumption.
  • CPI is calculated based on a fixed basket of goods and services, which the government may periodically revise.
  • The change in the CPI over time is referred to as CPI-based inflation or retail inflation.

Released By:

  • The National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) compiles All India and state-wise CPI for Rural, Urban, and Combined sectors.
  • The NSO releases CPI numbers monthly.

Associated Article:

https://universalinstitutions.com/inflation/