Retail inflation rose to 6.93 percent in July due to a major increase in the prices of food and beverages. According to official data released by the government on Thursday, the food inflation based on the Consumer Price Index (CPI) in July also rose to 9.62 percent. Earlier in June, retail inflation stood at 6.23 percent. At the same time, food inflation was at 8.72 percent. This is the second consecutive month when inflation has been above the Reserve Bank of India’s target. The government has given a target to the RBI to contain inflation between 2-6 percent.
The National Statistics Office has said that field staff from the NSO’s Field Operations Division typically collect data on commodity prices on a weekly roster in 1,114 urban markets and select 1,181 villages. The NSO said that price data in July also increased with the gradual removal of various restrictions related to the epidemic and the resumption of non-essential activities. In July, data on prices of goods was collected from 1,054 (95 percent) cities and 1,089 (92 percent) villages.