India’s retail inflation picked up further in July, with consumer price inflation rising to 4.45%, up from 4.38% in June, as higher food prices continued to put pressure on consumers.
The latest reading marks the fourth consecutive monthly increase in headline retail inflation. It also means inflation has remained above the Reserve Bank of India’s 4% target for a second straight month.
The steady rise has been visible since the beginning of the financial year. Retail inflation moved from 3.48% in April to 3.93% in May, before climbing to 4.38% in June and 4.45% in July.
Food Inflation Remains A Major Concern
Food prices continued to be one of the biggest factors behind the increase. Inflation based on the Consumer Food Price Index (CFPI) rose to 5.52% in July, compared with 5.32% a month earlier.
The pressure was more pronounced in rural India, where food inflation reached 5.79%, compared with 5.05% in urban areas.
Overall rural retail inflation increased from 4.74% in June to 4.84% in July, while urban inflation edged up from 3.93% to 3.96%.
The data shows that households in rural areas continued to face stronger price pressures across several categories.
Ginger, Garlic And Onion Prices Jump
Several kitchen staples recorded sharp year-on-year price increases during July.
Ginger inflation jumped to 83.62%, compared with 50.41% in June. Garlic prices also saw a steep rise, with inflation increasing to 35.36% from 17.93%.
Onion prices recorded another significant increase, with inflation accelerating to 22.54%, compared with just 4.73% in June.
Gold And Silver Jewellery Become More Expensive
Precious metals also added to the price pressures.
Silver jewellery prices rose 109.84% year-on-year, while inflation in gold, diamond and platinum jewellery stood at 32.98%.
Services also remained relatively expensive. Inflation in restaurant and accommodation services reached 7.72%, while transport services recorded inflation of 4.43%.
Personal care, social protection and miscellaneous services recorded an even higher inflation rate of 14.77%.
Tomatoes And Potatoes Provide Some Relief
Not all food items became more expensive.
Tomato prices fell 4.59% year-on-year in July, reversing the sharp 31.92% increase recorded in June.
Potato prices declined 16.56%, while lady’s finger became 5.52% cheaper compared with a year earlier.
Despite these declines, the broader increase in food prices kept overall retail inflation elevated in July.
The latest inflation figures will remain important for policymakers as they assess price stability, household spending pressures and the broader economic outlook.
