Retail inflation drops to 5.59 pc in July: NSO
The numbers are within the target of 2-4 percent kept by the RBI, which had predicted the CPI to be around 5.9 percent in the second quarter of FY22.
According to data released by the government, the Consumer Price Index (CPI) decreased to 5.59 percent in July 2021 — down from 6.62 percent in June 2021 and 6.73 percent in July 2020. According to a poll conducted by media agency, Reuters, consumer price inflation was expected to reach 5.78 percent.
Furthermore, according to numbers released by the National Statistical Office (NSO), the inflation in the food basket slowed down to 3.96 percent in July this year from 5.15 percent in the previous month.
The numbers achieved are within the target of 2-4 percent kept by the Reserve Bank of India (RBI), which had predicted the CPI to be around 5.9 percent in the second quarter of FY22. The slump in demand caused by the second wave of COVID-19 is being touted as the reason for the reduction in numbers.
The second wave of the coronavirus pandemic brought the entire country to a standstill. Apart from loss in demand, it resulted in enormous loss of life, leading to a more large-scale impact than the one caused by the first wave.
Speaking at Confederation of Indian Industry (CII) Annual Meeting 2021, Finance Minister Nirmala Sitharaman highlighted that India's economy has started recovering as exports have begun to grow rapidly and tax collection has increased.
At the same event, Prime Minister Narendra Modi said that India becoming self-reliant depends on the Indian products and the industries that manufacture them, while emphasising that the government "is witnessing record Goods and Services Tax (GST) collection."
Edited by Kanishk Singh