August retail inflation at 3.65%, below RBI's 4% target
New Delhi: India’s retail inflation rose to 3.65% on an annual basis, up from a five-year low of 3.54%, according to government data released on Thursday.
The data showed that food inflation climbed to 5.66% in August. This category, which accounts for more than half of the Consumer Price Index (CPI) basket, stood at a 13-month low of 5.42%.
Despite this rise, the headline inflation remained within the Reserve Bank of India’s (RBI) tolerance range of 2-6%.
However, it continues to fall short of RBI’s goal of maintaining a “durable 4%”, as emphasised by the RBI Governor Shakti Kanta Das.
A weakened rupee, coupled with risks posed by the monsoon, is likely to drive inflation higher.
Inflation for the vegetables jumped 10.71% in August, against 6.83% in the preceding month.
This rise is due to irregular monsoon rains, which could impact the crops and push the prices up in the future.
The inflation rate for pulses stood at 13 percent, while cereals were at 7.31 percent.
Fruit inflation stood at 6.45 percent, while milk and milk products saw an inflation rate of 2.98 percent in August.
Inflation rates for the meat and fish, and egg segments were 4.30 percent and 7.14 percent, respectively.
Fuel inflation: The inflation rate for fuel and light was (-)5.31 percent in August, compared to (-)3.66 percent in July.
Other sectors: Inflation rates for the clothing & footwear and housing sectors were 2.72 percent and 2.66 percent, respectively.
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