India’s retail inflation edged up to 4.45% in July, driven by accelerated food costs including onions, ginger and garlic, highlighting ongoing price pressures despite subdued vegetable prices.
India’s retail inflation edged up to 4.45% in July from 4.38% in June as food costs gathered pace, with onion, ginger and garlic among the sharpest risers, according to data released by the Ministry of Statistics and Programme Implementation. Food inflation, measured by the Consumer Food Price Index, increased to 5.52% from 5.32% the previous month, with rural food inflation at 5.79% and urban food inflation at 5.05%.
The increase was cushioned by continued weakness in several vegetable prices. Potato, lady’s finger and peas all remained in deflation, while tomato prices fell year on year after a strong increase in June. Inflation in the food and beverages category stood at 5.24%, transport at 4.43% and restaurants and accommodation services at 7.72%.
Price pressure was more pronounced in rural India than in cities, where inflation was 4.84% against 3.96% in urban areas. Housing inflation was comparatively moderate at 2.22%. The ministry said the July data were provisional and were compiled from price information gathered across 1,407 urban markets, including online markets, and 1,465 villages, with a 100% response rate in both rural and urban areas.
The latest reading is far below the 7.44% jump recorded in July 2023, when inflation was pushed higher by a surge in food prices and vegetable costs. At that time, the food inflation gauge climbed to 11.51%, its highest level in nearly three years, and retail inflation moved above the Reserve Bank of India’s upper tolerance band of 6%.
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