Loans will be cheaper! Inflation rate at 5-year low!!!
Loans will be cheaper! Inflation rate at 5-year low!!!Inflation seems to be giving great relief to the public in July. Retail inflation has come down to a 5-year low in July and stood at 3.54 percent. This is the lowest level since august 2019. Retail inflation was at 3.28 percent in august 2019. Retail inflation (CPI Inflation) and industrial production (IIP) data have come on Monday. In this, IIP was at 4.2 percent in june 2024.Huge drop in food inflationThe major reason for the fall in retail inflation is the fall in food inflation. In July 2024, food inflation has come down to 5.42 percent, which was 9.26 percent in june 2024. Food inflation was at 7.4 percent in July 2023. Food inflation has come down due to the reduction in the inflation rate of vegetables and pulses.Relief from inflation of vegetables and pulses!According to the data of retail inflation released by the Ministry of Statistics, there has been a huge reduction in the inflation of vegetables and pulses in July 2024 as compared to June. Inflation rate of vegetables has come down to 6.83 percent in July, which was 29.32 percent in June. Inflation rate of pulses has been 14.77 percent in July, which was 14.77 percent in June. Inflation rate of grains and related products has been 8.14 percent, which was 8.75 percent in June. Inflation rate of sugar has been 5.22 percent, which was 5.83 percent in June. Inflation rate of eggs has increased and it has been 6.76 percent, which was 3.99 percent in the previous month. Inflation rate of milk and related products has been 2.99 percent.You will get relief from expensive EMI!Retail inflation has fallen below RBI's tolerance band of 4 percent. The reserve bank of india has set a target of inflation rate coming down to 4 percent to change its policy rates. In the month of July, the retail inflation rate has come down to 3.54 percent, which is the lowest in the last 5 years. In such a situation, it is believed that when the reserve bank of india reviews the policy rates in october 2024, then there may be relief from inflation EMI. On august 8, 2024, RBI, while announcing the policy rates, decided to keep the repo rate at 6.5 percent.