India's Retail Inflation Eases to 3.54% in July, Lowest in 59 Months

India's retail inflation fell to 3.54% in July, the lowest in 59 months, from 5.08% in June. This is a significant decline, driven primarily by a reduction in food prices. The Reserve Bank of India's monetary policy measures are credited for this softening trend.

India's retail inflation rate dropped to a historic low of 3.54% in July 2024, marking the lowest level in 59 months, according to data released by the Ministry of Statistics and Programme Implementation on Monday.

Food inflation, a significant contributor to the consumer price index, also saw a substantial decline, with the year-on-year rate dropping to 5.42% in July from a staggering 8.36% in June. Urban and rural areas recorded inflation rates of 4.63% and 5.89%, respectively.

The softened inflation figures come as a relief to policymakers aiming to maintain a 4% inflation rate sustainably. The Reserve Bank of India's strategic interest rate hikes, totaling 250 basis points since May 2022, appear to be a pivotal factor in this trend. (ANI)

(With inputs from agencies.)