Inflation Falls to 5-Year Low
CPI Inflation Eases to 3.54% in July
Reserve Bank of India's Target Achieved
India's consumer price index (CPI) inflation eased to 3.54% in July, the lowest level in 59 months, government data showed on Monday. This marks the first time in nearly five years that inflation has fallen below the Reserve Bank of India's medium-term target of 4%.
The consumer price index rose 3.54% in July from a year earlier, compared to a 4.35% increase in June, according to data from the Ministry of Statistics and Programme Implementation.
The decline in inflation is attributed to a moderation in food prices, which account for nearly half of the CPI basket. Food inflation dropped to 1.34% in July from 3.85% in June.
The easing of inflation gives the Reserve Bank of India room to consider further monetary policy easing in the coming months.
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