New Delhi: Wholesale and retail inflation accelerated sharply in July as food prices soared but is still below RBI comfort level.
Wholesale rose to 1.88 per cent in July — first rise in five months — and retail inflation jumped to 2.36 per cent in July after easing for three straight months.
“Both WPI and CPI inch up in July at 1.88 per cent and 2.4 per cent year on year. But, still below the comfort level of 4 per cent,” said Subhash Chandra Garg, economic affairs secretary.
Industry too demanded a cut in interest rates by RBI due to subdued inflation below the Central Bank’s comfort level.
“Given the trend and outlook for inflation, we see clear space for a more accommodative stance in the monetary policy. This is all the more important given the state of industrial sector where growth is anaemic,” said Pankaj Patel, president, FICCI.
Inflation based on the Wholesale Price Index was 0.90 per cent in June 2017 and 0.63 per cent in July 2016.
Retail inflation jumped to 2.36 per cent in July from 1.46 per cent for June. Food inflation, however, saw deflationary pressure at (-) 0.29 per cent in July compared to (-)2.12 per cent in June this year.