India's retail inflation lowered more than expected in the month of July 2018. According to the data released by the Central Statistics Office (CSO) today, the consumer price inflation (CPI) for the month grew at 4.17 percent compared to July 2017.

After the Monetary Policy Committee raised interest rates for the second straight time at the beginning of August, food prices seem to have subdued and inflation is declined from its five-month high of 4.9 percent in June. Headline inflation slowed in July after rising for the previous four months.

The Reserve Bank of India hiked its benchmark lending rates twice in a row in the month of June and August to tackle inflationary pressure. The central bank has had a long-term aim to keep the CPI at 4 percent.

"We took two steps, one in June and one in August, to maximize our chances that we don't drift away from 4 percent and in fact, we move towards 4 percent," RBI Governor Urjit Patel had said during the policy meeting earlier this month.

The inflation for the September-ending quarter is projected to be at 4.6 percent, 4.8 percent in the second half of the financial year 2018-19, and 5 percent in the first quarter of the financial year 2019-20 as per the MPC.