CPI Inflation Data July 2023, India
Spread

India’s Consumer Price Index (CPI) based inflation rose to 7.44% from 4.87% in July, according to the latest report of the Ministry of Statistics and Programme Implementation. It is a big jump and considerably higher than last month. Team IndiaInFacts have analysed the data. let’s find out how CPI inflation has fared for July 2023 in your state.

In July 2022, the Consumer Price Index was recorded at 6.72 percent. The rise in CPI-based inflation is due to food inflation, which came in at 11.51 percent. The food inflation was 4.55 percent in June and it was 6.69 percent in July 2022.

The rural inflation stood at 7.63 percent in July. Urban inflation in the same month stands at 7.2 percent.
The food inflation for rural India was 11.04 percent and urban was 12.32, according to the official data. CPI data has been highest  since April 2022 when it was reported at 7.79%.

Food inflations hits double digit, CPI rises to 7.44 %

The Weather God has not been kind to this year. Lots of unseasonal rains coupled with extremely heavy downpour has affected the vegetable crops all over India. On year on year basis our vegetable component of food Inflations has escalated up to 37 .34% . Spices (21.63%), Pulses and Products (13.27 %) and Cereals and products (13.04%) are other significant contributors of Food inflation which has shown double digit spike.

'

Edible Oil prices has come down significantly in last few months. Oil & Fats has  registered a negative growth of 16.80 %.  On June 2, 2023,Government convenes 2nd meeting with leading Oil producers Association to discuss further cut in edible oil prices amidst fall in global prices. In the meeting Government has mentioned that they have observed that Industry is not passing the price drop benefits to the end consumer expeditiously.

State-wise CPI in July 2023: Rajasthan highest, Delhi lowest

While analysing Consumer price Inflation (CPI) numbers state-wise, IndiaInFacts.in find that there are two states registering inflation more than 9% i.e. Rajasthan (9.66%) and Jharkhand (9.16%).
Tamil Nadu (8.95%), Odisha (8.67%), Uttarkhand (8.58%), Telangana (8.55%), Haryana (8.38%), Uttar Pradesh (8.13%), Andhra Pradesh (8.11%) and Gujarat (7.46%) are other states with CPI inflation higher than national average.

Monsoon affected states like Himachal Pradesh (7.12 %) and Punjab (7.08%) Madhya Pradesh(6.73%), Chhattisgarh (6.05%) and Maharashtra (6.67 %) are relatively better placed.
Interestingly National capital Delhi (3.72%) enjoys lowest inflation in the country. Apart from Delhi, Assam(3.91%),Jammu & Kashmir (4.98 %) and West Bengal (5.96 %) has inflation level lower than RBI's tolerance band of 6 %.

Delhi has registered lowest inflation

It is really amusing to know that National Capital Delhi has registered lowest inflation from quite some months, while it is significantly higher in all neighboring states like Uttar Pradesh (8.13 %), Haryana (8.38%) and Rajasthan(9.66%).

Reserve Bank maintains Status quo for 3rd time

Just few days ago, on 10th of August, 2023, RBI Governor Shakti Kanta Das has mentioned that they have revised CPI inflation forecast for FY2023-24 to 5.4 % from 5.1%. RBI Governor has mentioned, “While the vegetable price shock may reverse quickly, possible El Nino weather conditions, along with global food prices need to be watched closely, against the backdrop of skewed Southwest Monsoon.”

High Interest cycle to continue for some more months 

Recent time RBI has maintained a status quo on revision of interest rates. Many economist even in among the MPC members have mentioned that RBI policy has lag effect. Even if they slash interest rate now it will itself takes few month to reflect on ground. Earlier many MPC members such as
Last MPC Meeting in June 2023, some MPC members has flagged their concerns about not RBI stance of not revising the rates downwards. External member Jayant Varma wrote,"Monetary policy is now dangerously close to levels at which it can inflict significant damage to the economy,".

Ashima Goyal, another external member, said inflation is falling as expected, and it is important to ensure the real repo rate does not rise too high and damage the economic cycle.


Spread
7 thoughts on “CPI-based Inflation Surges to 7.44% , Food Inflation hits double digit”
  1. Do you mind if I quote a few of your articles as long as I provide credit and sources back to your blog? My website is in the very same niche as yours and my users would really benefit from a lot of the information you provide here. Please let me know if this ok with you. Thanks a lot!

  2. An added important component is that if you are a senior, travel insurance for pensioners is something you should make sure you really contemplate. The more mature you are, the harder at risk you are for getting something bad happen to you while in foreign countries. If you are never covered by some comprehensive insurance plan, you could have quite a few serious complications. Thanks for sharing your suggestions on this blog site.

  3. Hi, i think that i saw you visited my weblog thus i came to “return the favor”.I am attempting to find things to improve my website!I suppose its ok to use some of your ideas!!

  4. Very good blog! Do you have any tips for aspiring writers? I’m hoping to start my own website soon but I’m a little lost on everything. Would you suggest starting with a free platform like WordPress or go for a paid option? There are so many choices out there that I’m totally confused .. Any suggestions? Cheers!

Leave a Reply

Your email address will not be published. Required fields are marked *