Retail inflation, measured by the consumer price index (CPI), has stayed within the Reserve Bank of India’s (RBI) target range of 2 per cent-6 per cent for the second straight month.
Retail inflation in August has eased to 5.30 per cent. (Photo: Reuters)
India’s retail inflation eased marginally to 5.30 per cent in August compared to 5.59 per cent in July, according to official data released by the government.
Retail inflation, measured by the consumer price index (CPI), has stayed within the Reserve Bank of India’s (RBI) target range of 2 per cent-6 per cent for the second straight month. However, it still remains higher than the central bank’s medium-term target of 4 per cent.
While retail inflation dipped in August due to falling food prices, the decrease was marginal due to continued supply chain disruptions that have led to higher prices in many commodities across various sectors.
The fresh inflation data released by the National Statistics Office (NSO) showed that food inflation slowed to 3.11 per cent in August from 4 per cent in July as vegetable prices contracted during the month.
But the fall in food inflation in August was countered by elevated levels of fuel and light inflation at 12.95 per cent and services inflation at 6.4 per cent.
While the retail inflation in August is lower than what economists had predicted, concerns about the rising prices of several commodities remain. The RBI had kept its policy stance stable last month, but expressed concern about rising inflationary pressure on the economy.
However, RBI Governor Shaktikanta Das said a few days ago that retail inflation is likely to moderate further, and it is unlikely that it would breach the 6 per cent threshold anytime soon.
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