Retail Inflation Data: There is news of relief on the inflation front. Due to the decrease in the prices of other commodities including crude oil, the retail inflation rate has come down in July 2022 and it has gone down to 7 percent. Retail inflation stood at 6.71% in July as compared to 7.01 percent in June. Whereas in May, 2022 it was 7.04 percent and in April it was 7.79 percent. Food inflation has come down in the month of July. Food inflation has also come down to below 7 per cent in July. Food inflation stood at 6.75 per cent in July as compared to 7.75 per cent in June.
Inflation rate close to RBI’s estimate
The retail inflation figure still remains above the upper limit of 6 per cent of the RBI’s tolerance band. But it is a matter of relief that the retail inflation rate has come close to the estimate of 6.70 percent for 2022-23. After the reduction in inflation rate, there may be a brake on the increase in interest rates. It is believed that the inflation rate may come down further. After which there is no need for RBI to make loans expensive.
Food inflation higher in rural areas
In the month of July, food inflation in urban areas has been 6.69 percent, which was at 8.04 percent in June. Whereas food inflation in rural areas has been 6.80 percent as compared to 7.61 percent in June.
Inflation reduced due to reduction in commodity prices?
Retail inflation has come down in the month of July due to reduction in the prices of many commodities including crude oil. At the same time, there has been a reduction in freight traffic due to the reduction of excise duty on petrol and diesel. Due to which inflation has come down.