As food prices fell, retail inflation fell to 5.59 percent in July 2021, down from 6.26 percent in June. In May 2021, the Consumer Price Index (CPI) rose rapidly to 6.30 percent due to supply chain disruption caused by the second wave of the Coronavirus pandemic.
Retail inflation has declined largely due to lower food prices. Food inflation for July 2021 is 3.96 percent as opposed to 5.15 percent in June 2021.
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As compared to May 2021 levels, retail inflation has fallen sequentially to its lowest in 3 months. It has also fallen below the Reserve Bank of India’s (RBI) upper margin, as the central bank had previously indicated that it should be at 4% for a five-year period ending March 2026, with a margin of 2% on each side.
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