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Retail inflation reaches two-year high, hits 6.07 pc in July

India TV Business Desk New Delhi 12 Aug 2016, 21:41:04 PM IST
India TV Business Desk

India's annual retail inflation shot up beyond the official tolerance level of 6 per cent for July mainly on higher food prices like pulses and vegetables, while on the brighter side the factory output rose 2.1 per cent in June, official data showed today.

Retail inflation, based on Consumer Price Index (CPI) was 5.77 per cent in June. In July 2015, it was at 3.69 per cent. Inflation was highest since September 2014, when it was at 6.46 per cent.

Food inflation during the month rose to 8.35 per cent, up from 7.79 per cent in June.

Government has put inflation targeting at 4 per cent with a range of plus/minus 2 per cent for next five years under the new monetary policy framework agreement with the Reserve Bank.

In July, sugar and confectionery inflation rose to 21.91 per cent (against 16.79 per cent in June); oil and fats to 4.96 per cent and spices to 9.04 per cent.

There was an uptick in prices of cereals and products with inflation standing at 3.88 per cent, while that for eggs shot up to 9.34 per cent (against 5.51 per cent).

Milk and products, also used as key ingredient for making eatables during festival, saw inflation rising to 4.13 percent in July (from 3.43 per cent).

Starting August, various festivals are celebrated in different parts of the country leading to higher sales of commodities ranging from sweets, fruits and food items.

Inflation in fruits, vegetables and pulses was 3.53 per cent, 14.06 per cent and 27.53 per cent respectively. CPI inflation for urban sector was 5.39 per cent in July, while that for rural segment it was 6.66 per cent.

 

(With PTI inputs)