India's Consumer Price Inflation Moderates To 9.86%

on August 21 2012 6:10 AM

India's retail inflation rate dropped marginally to 9.86 percent in July from 9.93 percent recorded in June, according to the data released by the Ministry of Statistics and Program Implementation.  

The country's annual consumer price inflation (CPI) declined marginally aided by a fall in cereals and spices, but the prices of vegetables remained high. However, the inflation for the rural areas increased to 9.76 percent in July from 9.65 percent in June while urban retail inflation fell to 10.10 percent from 10.44 percent in June.  

Prices of vegetables recorded the highest growth at 27.33 percent and edible oil prices went up by 17.37 percent. The consumers had to pay 12.49 percent more for pulses and related products in July. Egg, meat and fish became costly by 11.11 percent, compared to the corresponding month a year ago.

Other products that saw a sharp rise include sugar (9.06 percent), milk and milk products (11.90 percent), food and beverages (11.53 percent), clothing and footwear (11. 20 percent) from the July 2011 levels.

The prices of condiments and spices saw the least growth at 1.91 percent followed by cereals and cereal products at 6.5 percent.

Based on the Consumer Price Index (CPI), the inflation for June was revised to 9.93 percent from the provisional estimate of 10.02 percent.

Though the marginal decline indicates a slight reprieve for the consumers, the report is not expected to influence the Reserve Bank of India's monetary decisions as the central bank uses the Wholesale Price Index to monitor the inflationary forces in the country.

The headline Inflation, as measured by the Wholesale Price Index, declined to 6.87 percent in July from 7.25 percent in June. 

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