August Sees Retail Inflation Slow, but Still Above RBI’s Target

August Sees Retail Inflation Slow, but Still Above RBI's Target

Asif Iqbal | September 12, 2023 | 05:28 PM IST | Breaking News | Follow on Google News

August Sees Retail Inflation Slow, but Still Above RBI’s Target

pic cridt: Reuters

New Delhi: According to official data released on Tuesday, retail inflation in August eased to 6.83% year-on-year, a slowdown from July’s 15-month high of 7.44%. However, it continued to exceed the Reserve Bank of India’s target of 4% (+/-2). This marked the second consecutive month that consumer price inflation exceeded the central bank’s target range.Easing Inflation Driven by Edible Oil and Vegetable Prices.

August witnessed a deceleration in consumer inflation compared to July’s 7.44%, primarily due to decreasing prices of edible oil and a slight decline in vegetable inflation. The combined food price index, which had risen by 11.51% in the previous month, eased to 9.94% in August from a year ago.Factors Behind Inflation Trends.

Consumer price inflation’s persistence above the central bank’s target was driven by a significant surge in tomato and vegetable prices. Cereal prices remained in double digits, increasing by 11.6% in August compared to 13% in July. Inflation in milk and milk products stood at 7.7%, down from 8.34% in the previous month.

Although vegetable prices remained relatively high, they rose by 26.1%, a slowdown from the staggering 37.34% increase in July. Furthermore, prices of oils and fats recorded a decline of 15.3%, following a 16.8% drop in the previous month.Government Measures to Tackle High Prices.

In response to soaring prices, the government has implemented various measures to regulate trade in most food items, aiming to temper consumer inflation.

These measures include the banning of rice and wheat shipments abroad, the imposition of a 40% duty on onion exports, and allowing duty-free imports of pulses.Expectation of Inflation Cooling in September.

Analysts anticipate that inflation will likely cool in September with the arrival of new harvests in the markets. This could provide some relief from the persistent high inflation levels seen in recent months.

Asif Iqbal

Asif Iqbal is a seasoned news writer with a passion for delivering the latest updates to the public. Currently serving as the senior writer at VoM News, a prominent news outlet known for its comprehensive coverage of diverse topics, Asif has established himself as a reliable source of information. With a keen eye for detail and a knack for storytelling, he consistently provides readers with well-crafted articles that cover a wide range of news categories. His dedication to journalistic integrity and his commitment to staying ahead of the news curve make him an invaluable asset to Vom News, ensuring that readers are always well-informed on the issues that matter most. You can find his work and stay updated on current events by visiting vomnews.in.