Prices Of Only 60 Items Drop Even As CPI Declines To A5-Year Low Of 3.54% In July 2024

Consumer inflation declined to a 59-month low of 3.5% in July, compared to 5.1% in the previous month. However, only a few items saw lower prices in July. Vegetable and food prices increased. The only categories in the vegetable basket with significant weight that witnessed deflation were lemons (10.5%) and mangoes (0.3%). Out of the 299 items tracked by the Ministry of Statistics and Programme Implementation to compute the Consumer Price Index (CPI), which forms the basis of the consumer basket, only 60 items saw lower prices in July. A favorable base—inflation was a high 7.4% in July 2023—helped bring the headline number down. Given the high base from the previous year, the fall in overall inflation to 3.5% from 5.1% in June looks significant. Prices for most commodities were rising in July. Here’s a detailed report.