July Inflation May Fall Below 2% for First Time Since Jan 2019 on Softer Food Prices

Retail inflation in July is likely to have fallen below 2% for the first time since January 2019.

- Dipak Mondal @New Delhi

Analysts expect the figure to be in the range of 1.2-1.4%, aided by a favourable base effect and softer food prices. Retail inflation in June eased to 2.1% from 2.82% in May. In January 2019, it had touched a low of 1.97%.

"We expect July CPI inflation to ease further to 1.35%, led by a favourable base effect and overall softer food prices, even as vegetable prices are likely to see a seasonal, sharp sequential rise," said Madhavi Arora, Chief Economist at Emkay Global.