India News | Inflation Rises to 7 Pc in Aug; Remains Above RBI's Comfort Level for 8th Month
Get latest articles and stories on India at LatestLY. Retail inflation cut short its three-month declining trend and inched up to 7 per cent in August mainly due to higher food prices, according to official data released on Monday.
New Delhi, Sep 12 (PTI) Retail inflation cut short its three-month declining trend and inched up to 7 per cent in August mainly due to higher food prices, according to official data released on Monday.
The consumer price index (CPI) based inflation was 6.71 per cent in July and 5.3 per cent in August 2021.
The CPI inflation has remained above the RBI's comfort level of 6 per cent for the eighth month in a row. The Reserve Bank factors in retail inflation while deciding on its monetary policy.
According to the data released by the National Statistical Office (NSO), inflation in food basket was 7.62 per cent in August, up from 6.69 per cent in July and 3.11 per cent in August 2021.
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The rate of price rise was in excess of 10 per cent in case of vegetables, spices, footwear, and 'fuel and light' on annual basis.
However, there was contraction in inflation in egg and almost flat in protein rich 'meat and fish' during the month.
Inflation had reached a high of 7.79 per cent in April before decelerating in the next months to 6.71 per cent in July.
The government has tasked the Reserve Bank to ensure CPI inflation remains at 4 per cent with a margin of 2 per cent on each side.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)