There seems to be relief on the inflation front. According to government data, retail inflation fell to 3.54 percent in July, which is a sharp decline compared to the previous month. Retail inflation was at 5.08 percent in June. With this, retail inflation has fallen below the Reserve Bank of India's mid-term target of 4 percent. Data released by the government shows that retail inflation has reached its lowest level in five years.

lowest in 59 months

The government press release said that the year-on-year inflation rate based on the All India Consumer Price Index (CPI) numbers for the month of July 2024 has declined sharply to the lowest in the last 59 months.

softening of food prices

Retail inflation has declined in July due to the softening of prices of food items. This is the first time in nearly five years that inflation has come below the Reserve Bank of India's target of 4 percent. This information was given in the official data released on Monday. Consumer Price Index-based retail inflation was 5.08 percent in June this year. Whereas in July last year, it was 7.44 percent.

It was less than 4 percent in 2019

According to the data of the National Statistical Office (NSO), inflation in food items stood at 5.42 percent in July. It was 9.36 percent in June. Earlier, retail inflation was below four percent in September 2019. The government has given the responsibility to the Reserve Bank to keep retail inflation at four percent with a variation of two percent.