India's consumer pricing index (CPI)-based headline retail inflation fell to a nearly five-year low of 3.54 percent in July, owing to a strong drop in food costs. Separately, growth in the index of industrial production (IIP) fell to a three-month low of 4.2% in June, down from an upwardly revised number of 6.2% the previous month.

According to figures provided by the National Statistical Office (NSO) on Monday, food inflation fell to 5.42 percent in July from 9.36 percent in June, led by lower prices for cereals (8.14 percent), fruits (3.84 percent), and vegetables (6.83 percent). 

Though pulse prices fell 14.8% from the previous month, they still rose by double digits in July.

Earlier, in the customary post-monetary policy committee (MPC) statement, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Thursday that headline inflation increased to 5.1% in June after remaining steady at 4.8% in April and May 2024, primarily due to the stubborn food component.

Manufacturing (2.6%) and power (8.6%) were the leading causes of the fall in IIP growth in June. However, mining growth rose to 10.3% throughout the month. All six use-based categories had declining growth.