The Central Statistics Office (CSO) in its latest price data revealed that retail inflation for the month of July stood at 3.15%, which is well within the RBI's 4% target level. June CPI inflation stood at 3.18% while it was 4.17% in the corresponding month last year.

The growth in inflation for July month has dipped despite an increase in the price of food items, said the official release.

Food inflation which measures a change in kitchen budget was marginally up at 2.36% in comparison to 2.25% in the preceding month. Cereals and products category logged steady inflation rate of 1.3% while vegetables inflation came in lower at 2.82% versus 4.66% in June.

Notably, in its bi-monthly monetary policy review meet, the apex banking regulator RBI factors mainly retail inflation to decide its interest rate trajectory.

For the July-September period, the RBI has projected retail inflation to be at 3.1% while for the second half of the ongoing financial year, inflation is pegged to be in the range of 3.5-3.7%.

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