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July retail inflation is expected to exceed the maximum limit of six percent, the government will release the figures on this day
Retail inflation is expected to exceed 6 percent in July due to higher prices of vegetables and cereals, especially rice and wheat. RBI capped retail inflation at 6 percent. In June this year, the retail inflation rate was 4.81 percent and for the last four months, the retail inflation rate has been below 6 percent.
Due to the increase in the prices of vegetables, pulses, and cereals, especially rice and wheat, the July retail inflation rate is expected to be more than six percent. The RBI has fixed a ceiling of six percent for the retail inflation rate. In June this year, the retail inflation rate was 4.81 percent and for the last four months, the retail inflation rate has been running below six percent.
On August 14, the retail inflation rate data for July will be released by the government. Economic experts say that mainly the increase in the prices of food items seems to be affecting the retail inflation rate. Food articles have a weightage of 47.25 percent in measuring the retail inflation rate. Out of these 47.25 percent, 7.46 percent share is of vegetables, which includes different types of vegetables including potato-onion and tomato.
The share of all types of cereals including wheat-rice is 12.35 percent and the share of pulses is 2.95 percent. In such a situation, the retail inflation rate will definitely be affected by the increase in the prices of these items. According to Soumya Kanti Ghosh, Group Chief Economic Advisor, SBI, the retail inflation for the month of July could reach 6.7 percent.
