Retail inflation spiked to a 15-month high of 7.44 per cent in July as tomatoes, vegetables and other food items turned costlier, overshooting Reserve Bank of India’s comfort level for the first time in the current financial year. 

The RBI has the mandate to keep retail inflation in the range of 2 to 6 per cent. After remaining above the upper limit for most of the 2022-23 financial year, inflation was in the central bank’s comfort zone this financial year till June.

Retail inflation had stood at 6.71 per cent in July 2022, and the previous high was recorded at 7.79 per cent in April 2022. 

Consumer Price Index (CPI)-based inflation in the food basket was at 11.51 per cent in July, significantly up from 4.55 per cent in the preceding month, and 6.69 per cent in July 2022, according to the data released by the National Statistical Office (NSO). 

In July, the annual inflation in the vegetables basket was at 37.44 per cent, spices at 21.63 per cent, pulses and products at 13.27 per cent, and cereals and products at 13 per cent. 

The food and beverages segment together contribute about 54 per cent of the overall CPI. 

However, the rate of price rise in oils and fats segment declined by 16.8 per cent. The inflation in meat and fish, egg and fruits was in lower single digit.