India's retail inflation rate in July fell to an 8-year low.

Due to the decline in food prices, including vegetables and pulses, India's retail inflation rate in July fell to below 2% for the first time in eight years, causing some harm to farmers but giving the central bank further room to cut interest rates. India's retail inflation rate in July fell to 1.55% on an annual basis, lower than June's 2.10% and below the market survey of 1.76%. According to a statement from the Indian government, this number is the lowest since June 2017, below the Reserve Bank of India's tolerance range of 2%-6%. The central bank's task is to ensure that the inflation rate does not fall below or exceed this range for more than three quarters. The central bank had already cut its inflation expectation for the current fiscal year from 3.7% to 3.1%. The main reason for the significant decline in the inflation rate over the past 8 months is food prices. Food prices fell by 1.76% in July, revised down from 1.01% in June. Vegetable prices fell by 20.69%, compared to a 19% drop in June; pulse prices fell by 13.76%, compared to a 12% drop in June.