India’s inflation reaches record high

Retail inflation in India surged to a 15-month peak in July, primarily propelled by the escalating prices of vegetables and cereals.

During the month, inflation climbed to 7.44%, a significant increase from June’s figure of 4.87%. This rise takes the inflation rate to its highest point since April 2022.

Food inflation, a substantial component comprising nearly half of the entire consumer basket, experienced a notable surge to 11.51% in July, marking a substantial jump from the 4.49% recorded in June.

Devendra Pant, an economist at India Ratings, commented on the situation, stating, “The sharp increase in July 2023’s Consumer Price Index (CPI) inflation was within anticipated parameters. However, the unexpected level of retail inflation at 7.44% was surprising.”

The inflationary trend in India holds implications for both consumers and policymakers, potentially influencing economic decision-making and fiscal policies.