The Consumer Price Index (CPI) in the country during the month of July eased to 7.88 per cent compared to 8.22 per cent in the previous month and 8.26 per cent in July last year.
On month-on-month basis, however, the index shows an increase of 1.7 per cent as against 0.6 per cent in June. The increase is mainly attributed to higher food prices due to Ramazan and quarterly revision in housing index, viewed the analysts at Topline Research.
To recall, they said, increased taxes and higher petroleum prices kept prices on the higher side last year.
In coming months, the analysts said, though the effect of Ramazan would phase out, the expected second round of energy prices rationalisation may keep the price hike on higher side. “For FY15, we expect CPI to range between 8.0-8.5 per cent,” they said.
