According to MoSPI data, the provisional inflation rate stands at 3.54% for the entire country, with rural areas experiencing a higher rate of 4.10% compared to 2.98% in urban regions.
Moreover, the All India Consumer Food Price Index (CFPI) reveals that food inflation in July 2024 has reached its lowest level since June 2023. The provisional year-on-year food inflation rate is 5.42% nationwide, with rural areas at 5.89% and urban areas at 4.63%.
In July 2024, all groups witnessed a reduction in inflation rates, with notable decreases observed in the vegetables, fruits, and spices subgroups.
Inflation Trend
In its monetary policy review last week, the RBI had said, “A degree of relief in food inflation is expected from the pick-up in the south-west monsoon and healthy progress in sowing. Buffer stocks of cereals continue to be above the norms. Global food prices showed signs of easing in July, after registering increases since March 2024.”
“Assuming a normal monsoon, and taking into account the 4.9 per cent inflation print in Q1, CPI inflation for 2024-25 is projected at 4.5 per cent, with Q2 at 4.4 per cent; Q3 at 4.7 per cent; and Q4 at 4.3 per cent. CPI inflation for Q1:2025-26 is projected at 4.4 per cent. The risks are evenly balanced,” RBI governor Shaktikanta Das had said.
The latest inflation data would come as a relief for the central bank which has a target of keeping the CPI inflation close to the 4% mark with a range of 2-6%. The data may also boost hopes of a early rate cut from the RBI-led Monetary Policy Committee in its next meet.