Retail inflation drops to 6.71 percent in July, yet the RBI faces failure in just two months.

The Consumer Price Index (CPI) was used to calculate India's headline retail inflation rate, which dropped to a five-month low of 6.71 percent in July, according to information provided on August 12 by the Ministry of Statistics and Programme Implementation.

The CPI inflation rate was 7.01 percent in June.

The July CPI inflation rate of 6.71 percent is in line with the consensus forecast. A Moneycontrol survey indicated that CPI inflation dropped to 6.7 percent in July.

Even though inflation reached a five-month low in July, it has now gone 34 straight months without falling inside the Reserve Bank of India's (RBI) tolerance range of 2 to 6 percent and 4 percent, respectively.

Since average inflation has been above or below the 2–6% tolerance band for three straight quarters, the central bank is just two months away from not meeting its inflation objective.

Inflation measured by the CPI was 6.3 percent in January through March and 7.3 percent in April through June. Inflation must be higher than 5.7 percent in both August and September in order for it to average 6 percent or less from July through September.

The CPI recorded 6.3 percent inflation from January through March and 7.3 percent from April through June. In order for inflation to average 6 percent or less from July through September, it must be greater than 5.7 percent in both August and September.

In the case that the RBI fails,  it is obligated to provide the central government with a report outlining the reasons why, the actions it intends to take to bring inflation back to goal, and how long it anticipates it would take.

Here are the list of Inflation change in Index,  July 2022 vs June 2022.