Inflation dipped to a five-month low of 5.19 per cent in July mainly on account of decline in prices of some food articles, vegetables and protein rich items.
It was at 5.43 per cent last month and 5.84 per cent in July 2013.
"Inflation continues to be a concern as prices of food articles are still elevated. Amidst the current situation, it is amply clear that Reserve Bank will maintain a watchful stance going ahead," Federation of Indian Chambers of Commerce and Industry president Sidharth Birla said.
"However, we hope that due focus will be given on the implementation of measures announced by the government to tame food prices. Also, it needs to be assured that the industrial growth is not stifled and recent momentum seen in Index of Industrial Production numbers is kept pace with," he added.
"Prices of primary and food articles remain a worrying area about inflation. Deficient rainfall coupled with inherent weaknesses in supply management need to be addressed," Assocham President Rana Kapoor said.
"While food inflation may not be a function of interest rates, the monetary authorities do get greatly influenced by it, since the issues relate to common people," he
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Acche Din? Inflation eases to 5-month low of 5.19%