CPI inflation at record low in July: Poll

Economists polled by Mint projected consumer price index inflation in the range of 1.1-1.8%

- Manjul Paul

India's retail inflation likely fell to a record low in July due to a sustained decline in food inflation, according to a Mint poll.

The inflation measured by the current consumer price index (CPI) is estimated to further fall to 1.4% in July from 2.1% in the previous month, according to the poll of 22 economists.

That would mean the lowest since January 2014 under the current CPI series, with 2012 as the base year.

However, economists said this could mark the lowest point in the declining streak and expect inflation to go up from August onward.

So far, the continued statistical effect of a favourable base effect, especially for food, has helped in pulling inflation lower.