Cooling food prices may have helped moderate retail inflation to a five-month low of 6.7% in July, but there could be a reversal in August’s inflation print thanks to concerns about the uneven progression of monsoon through the country and other factors.
Price rise in food items had dropped to the lowest level since March 2022 at 6.75% in July, from 7.75% in June, and was seen as the key driver for bringing consumer price inflation below 7% after a three-month spell. In recent weeks, the government has imposed curbs on external as well as internal trade of food items like rice, atta (wheat flour), and tur dal (red gram), reflecting its recognition of their surging prices.
Editorial | Staying the course: On monitoring inflation
