India Inflation Eases Further To 1.55%, Lowest Since June 2017

(RTTNews) - India's consumer price inflation eased more-than-expected in July to the lowest level in just over eight years amid a continued fall in food prices, official data revealed on Tuesday.

Consumer price inflation eased to 1.55 percent in July from 2.10 percent in June. The expected rate was 1.76 percent.

Moreover, this was the lowest inflation rate since June 2017, when prices rose only 1.46 percent.

The Reserve Bank of India held rates at 5.5 percent during its policy meeting last week.

Food inflation remained negative in July, with prices falling by 1.76 percent versus a 1.01 percent increase in June.

The significant decline in headline inflation and food inflation was mainly attributed to favorable base effects and to declines in the inflation of pulses and products, transport and communication, vegetables, cereals and products, education, eggs, and sugar and confectionery, the ministry said.

Inflation based on transportation and communication moderated to 2.12 percent from 3.90 percent. Meanwhile, housing inflation eased marginally to 3.17 percent from 3.18 percent.

On a monthly basis, consumer prices moved up 0.93 percent in July.