Food items drag retail inflation to three-month low of 5.59% in July

Even as the food inflation rate dropped to 3.96 per cent from 5.15 per cent, certain items saw an elevated rate of price rise

Retail inflation fell to a three-month low of 5.59 per cent in July from 6.26 per cent in the previous month as the rate of price rise in food items, particularly vegetables, declined. However, economists cautioned that inflationary pressures might come back if supply is disrupted and demand rises with the economic recovery later in the current financial year.  

Fuel inflation remained elevated in July despite some moderation from the previous month. The inflation rate for petrol stood at 23.70 per cent, as against 24.54 per cent in June. For diesel, it was 22.71 per cent compared with 28.70 per cent