Days after retail inflation eased significantly to 5.59 per cent in July 2021 from 6.26 per cent in June led by falling food prices, Finance Minister Nirmala Sitharaman on Monday said that inflation is expected to remain within the 2 per cent and 6 per cent levels.
“I expect inflation to remain contained in the 2 per cent to 6 per cent levels,” she said.
The fall in Consumer Price Index (CPI) inflation in July 2021, was in sharp contrast to May 2021, when it had risen sharply to 6.30 per cent due to supply chain disruption owing to the second wave of the Coronavirus pandemic.
The retail inflation, was down mainly due to falling food prices as food inflation for July 2021 fell to 3.96 per cent from 5.15 per cent in June 2021.
The July retail inflation was also within the Reserve Bank of India’s (RBI) upper margin as the central bank had earlier stated that it should be at 4 per cent with a margin of 2 per cent on either sides for a five year period ending March 2026.