New Delhi, July 12 (PTI): Retail inflation hit a new low of 1.54 per cent in June, dragged down by a decline in prices of food items such as vegetables, pulses and milk products. “The number of 1.54 per cent is historically low and reflects the firm and ongoing consolidation of macro economic stability,” Chief Economic Adviser Arvind Subramanian told reporters. The retail inflation in the fuel and light segment slowed to 4.54 per cent as compared with 5.46 in May. The Reserve Bank of India, which mainly factors in retail inflation to arrive at its monetary policy, is slated to meet in early August to announce the next bi-monthly policy rate. At its last policy meeting, in June, the central bank had kept the key lending-rate unchanged, citing risk to inflation.

Source: The Telegraph July 12, 2017 13:41 UTC