Retail inflation rose to 6.93% in July, mainly on account of higher prices of food items, government data showed on Thursday.
The food inflation, according to the Consumer Price Index (CPI) data, increased to 9.62% in July.
The retail inflation in June was 6.23%, while the food inflation stood at 8.72%.
It is for the second consecutive month that the retail inflation has been above the RBI’s comfort level. The government has mandated the central bank to restrict the inflation at 4% (+, - 2%).
The central bank mainly factors in retail inflation while arriving at its bi-monthly monetary policy.
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