Mumbai: Inflation dipped to a five-month low of 5.19% in July mainly on account of decline in prices of some food articles, vegetables and protein-rich items. It was at 5.43% in June and 5.84 per cent in July 2013.
Inflation in vegetables declined 1.27%, and for onion it was (-) 8.13% on an annual basis in July, as per the WPI data released on Thursday. However, potato prices shot up 46.41% and fruits 31.71% during the month. Rate of price rise in milk was at 10.46%.
Inflation in the egg, meat and fish category stood at 2.71% in July as against 10.27% in the previous month. While the rate of price rise in pulses was 3.31%, it was at 4.46% for cereals. In rice it was 6.85% and wheat 1.02% in July.
Inflation in the fuel and power category, meanwhile, was down at 7.40% from the previous month.
The WPI inflation data was revised upwards for May to 6.18%, from 6.01% as per provisional estimates.
The Reserve Bank in its monetary policy review last week had cautioned that continued uncertainty over monsoon could stoke food inflation, but expressed the hope that government policies will improve supplies in the coming months. Retail inflation data for July, released earlier this week, showed a marginal inch up to 7.96%.
Bureau Report
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