NEW DELHI: Retail inflation inched up to 4.45% in July on expensive kitchen staples, including onion and ginger, even as price rise remained above the Reserve Bank’s median target for the second consecutive month, according to govt data.The consumer price index (CPI)-based retail inflation was 4.38% in June.
Data showed transportation costs rose to 4.4% from 4.3%, while inflation in restaurant prices went up 7.7% from 6.9%
The July reading is the highest since the new series, with base year 2024, came into effect in Jan.Food inflation in July rose to 5.52% from 5.32% in the preceding month, according to CPI data released by the National Statistics Office (NSO).Inflation in onions increased significantly to 22.54% in July from 4.73% in June. The rate of price rise in ginger shot up to 83.62%. Inflation in garlic also rose significantly.On the other hand, inflation in potatoes, ladyfinger, peas and tomatoes remained negative.Earlier this month, Reserve Bank Governor Sanjay Malhotra said higher inflation was mostly on account of fuel and food, with few signs of generalisation of price pressures so far.Core inflation, excluding precious metals, continues to be benign.As projected earlier, Malhotra said headline inflation is expected to rise further in the near term and peak in Q3 2026-27, primarily due to food and fuel prices, before moderating thereafter.The central bank has projected CPI inflation for 2026-27 at 5%, marginally lower than its June estimate.The govt has mandated the Reserve Bank to ensure retail inflation remains at 4%, with a margin of 2% on either side.The NSO data further showed that while the national average inflation was 4.45% (provisional) in July, the corresponding CPI rates for rural and urban areas were 4.84% and 3.96%, respectively.Telangana recorded the highest inflation at 6.32%, while Mizoram (1.84%) recorded the lowest in July, according to the NSO data.Dipti Deshpande, senior director and principal economist, Crisil, said July brought some relief on the inflation front as food inflation saw a slower rise and non-food inflation remained steady. agencies
