Inflation falls to single digit at 9.97 pc in July

Inflation falls to single digit at 9.97 pc in July

Wholesale price-based inflation fell to single digit at 9.97 percent in July, owing to decline in prices of certain food and non-food items.

The inflation was at 10.55 percent in June, while for April it was revised upwards to 11.14 percent from the provisional number of 10.16 percent.

Inflation was in double digits at over 10 percent in the last four months to June.

In July, onion prices dipped by 6.85 percent, while edible oils became cheaper by 0.34 percent compared to the same period last year.

Vegetable prices fell by over 14 percent and that of potato by over 44 percent on year-on-year basis.

Cement prices fell by 8.36 percent and that of non-metallic mineral products by 4.81 percent on yearly basis.

The food index rose marginally by 0.9 percent as the impact of decline in prices of potato, onion and other vegetables was somewhat neutralised by rise in prices of cereals (6.17 percent), rice (6.28 percent), pulses (21.98 percent) milk (18.06 percent) and fruits (9.52 percent) on yearly basis.

Among primary (raw) food items, moong became cheaper by 4 percent, while masur, arhar and fish-marine by 1 percent each compared to same period last year.

Food inflation had surged back to double digit at 11.40 percent for the week ended 31st July, after remaining in single digit for two consecutive weeks.

In July, the fuel index rose by 3.2 percent due to higher prices of kerosene (24 percent) and liquefied petroleum gas (8 percent).

The government had in late June decontrolled the prices of petrol and increased prices of diesel, LPG and kerosene.

However, the prices of furnace oil declined by 2 percent and that of naphtha and light diesel oil by one percent each.