Retail inflation rises to 15-month high of 7.44% in July

Retail inflation in India surged to 7.44% in July, the highest since April 2022, due to a sharp 11.5% spike in food prices. Imports and exports also fell 15.9% and 17% respectively. This breaks a four-month streak of inflation below the central bank's upper tolerance threshold of 6%.

Retail inflation resurged in July to hit 7.44% from 4.87% in June, with consumers facing a sharp 11.5% spike in food prices. Food prices, in fact, shot up by over 12.3% for urban consumers in July. Rural consumers encountered 11% food inflation, but faced a higher overall inflation rate of 7.63% in July, as per the National Statistical Office.

This is the highest pace of retail inflation since April 2022 and the first time since September 2022 that price rise has been over 7%. July’s inflation print breaks a four-month streak below the central bank’s upper tolerance threshold of 6%.

The inflation in the food basket was 11.51% in July compared to 4.55% in June and 6.69% in July 2022, as per the data.

The retail inflation in vegetables year-on-year was 37.43% while the rate of price rise in ‘cereals and products’ was 13%, showed the data released by the National Statistical Office (NSO)

India’s goods exports dropped 15.9% in July to $32.25 billion while imports fell 17% to $52.9 billion, as per Commerce Ministry estimates.

(With inputs from PTI)