Retail inflation eases to 9.86 percent in July

August 21st, 2012 - 5:01 pm ICT by IANS  

New Delhi, Aug 21 (IANS) India’s retail inflation declined marginally to 9.86 percent in July as compared to 9.93 percent in the previous month helped by easing in prices of cereals and spices, government data showed Tuesday.

Retail inflation eased in urban areas while it registered a marginal increase in rural areas.

Inflation based on Consumer Price Index (CPI) declined to 10.1 percent in urban areas in July as compared to 10.44 percent in the previous month.

In rural areas it grew to 9.76 percent during the month under review as compared to 9.65 percent in June year-on-year, according to data released by the Central Statistics Office (CSO).

In respect of food and beverages, annual inflation for rural areas was 11.33 percent, while for urban areas it was 12.15 percent. The combined inflation for food and beverages was 11.53 percent in July.

The lowest increase in price was in condiments and spices, which registered an increase of 1.91 percent. Prices of cereals increased at a modest rate of 6.45 percent.

However, vegetables became costlier by 27.33 percent in the month of July year-on-year.

Central Statistics Office (CSO) started the CPI-based inflation series in January this year, in a bid to track price movements in rural and urban areas more accurately.

Price data are collected from selected towns by the field operations division of National Sample Survey Organisation (NSSO), and from selected villages by the Department of Posts.

Price data are received through web portals maintained by the National Informatics Centre.

Core inflation based on wholesale price index had declined to a 32-month low of 6.87 percent in July, according to data released by the ministry of commerce and industry last week.

The wholesale price-based inflation was 9.36 percent in the corresponding month of previous year and 7.25 percent in June 2012.

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