Prices reduced in data, retail inflation decreased from 7.01 to 6.71% in July, food items became cheaper

Common people who are scorched in the fire of inflation have got ointment in the form of figures. According to the data released by the statistics department on Friday, the retail inflation rate has come down to 6.71 percent in the month of July. This figure of inflation is the lowest since March. However, it is still more than the fixed figure of the Reserve Bank. July is the seventh consecutive month when retail inflation has remained above the Reserve Bank's fixed figure. Retail inflation was recorded at 6.01% in January 2022, 6.07% in February, 6.95% in March, 7.79% in April and 7.04% in May.

Last month, there was a decline in food prices. According to the National Statistical Office (NSO) data, food inflation has fallen to 6.75 per cent in July 2022 from 7.75 per cent in the previous month. Food and beverages account for about 50 per cent of the consumer price index but the continued pressure in fuel prices has acted to fuel inflation.

Retail inflation may remain at 6.65 per cent in the month of July. Inflation was expected to come down due to fall in food prices and reduction in tax on fuel. Barclays had said in its report that there could be a decrease of 0.36 percent in July as against 7.01 percent in June. Earlier in April, the rate of retail inflation had reached an 8-year high of 7.79 percent.

The reduction in the rate of inflation has been contributed by the reduction in global commodity prices. Brent crude, the benchmark for international oil prices, is down nearly 9 per cent for the month. Crude has fallen below $100 for the first time since the Ukraine crisis. Apart from this, government intervention to reduce import duty and ban on export of wheat also helped in controlling inflation.