India CPI Inflation Rate Declined to 3.45%, Lowest in Nearly 5 Years

RBI has published India's Consumer Price Index. In July, the inflation rate was the lowest compared to the last 5 years. The CPI index of urban areas was 2.98%, but the CPI index of rural areas stands at 4.1%...RBI said, "The risks are evenly balanced,"

A significant decline is seen in India's CPi inflation rate. India's Consumer Price Index for July has been published by the RBI. The CPI rate is the lowest among the last 5 years. On the rates, the Governor of the Reserve Bank of India Shakti Kant Das gave assurance on inflation and said, "The risks are evenly balanced,"

India's CPI Inflation Rate Declined to 3.45% from 5.08% 

The Consumer Price Index for the month of July has fallen sharply to 3.45%. The Ministry of Statistics said in its report that this rate is the lowest inflation rate in the last 59 months, which is almost 5 years.

Just like CPI, there is also Significant Decline in All India Consumer Food Price Index (CFPI). According to the analysis of Ministry of Statistics and Programme Implementation, the CPFI rate of July 2024 was also the lowest in the last 12 months.

CPI Rates are Much Higher in Rural Areas as of Urban Areas 

The Consumer Price Index rate of the entire country is stable at 3.54%, but this month more inflation was seen in rural areas than in urban areas. The inflation rate of urban areas is 2.98%, but the rate of rural areas is standing at 4.10%

CPI Inflation is Even Low From Reserve Bank India's 4% Target 

The inflation rate of July was 5.08%; accordingly, this month inflation fell by 1.54%, as is happening for the first time in the last 5 years that inflation is running approximately 0.5% below the RBI's 4% targeted mark.

"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

Significant Decline in Food Prices, But Significant Surge in Vegetables Prices 

However, due to heavy rains everywhere, there has been a huge increase in the prices of vegetables, the vegetable index increased to 14.1% in July. Instead of increasing in the monsoon months, food prices have significantly Declined. Food inflation was 9.36% in June which has now fallen to 5.42% in July.

What Reserve Bank of India is Saying about Monsoon Season ? 

In its Latest Press Conference Reserve Bank of India marked,  "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."