Wednesday, 07 December 2022

Retail inflation of India to 5.30% in August

Retail inflation of India to 5.30% in August

CPI Inflation India Rate August 2021: The country's retail inflation growth eased to 5.30 percent in August, as the Ministry of Statistics & Programme Implementation (MoSPI) data indicate.

The retail inflation was measured by the Consumer Price Index (CPI) for July, 5.59 percent.

This is the second following month that the CPI data has come within the (RBI) Reserve Bank of India's upper margin of 6 percent. Before that, the CPI went above the 6 percent mark for two consecutive months in May and June.

The government has commended the central bank for maintaining retail inflation at 4 percent, with a gap of 2 percent on either side for five years ending March 2026.

The CPI data is mainly factored in by the RBI while making its bi-monthly monetary policy. In its last month's policy meeting, the Monetary Policy Committee (MPC) of the central bank had kept the repo rate unchanged for seven consecutive times at 4 percent while maintaining an 'accommodative stand' as long as necessary to mitigate the impact of the COVID-19 pandemic.

Retail inflation of India to 5 30 in August 1unsplash image

Read More : GDP to grow of India in 18.5 % in the third quarter

The central bank has projected the CPI inflation at 5.7 percent during the financial year 2021-22 (FY22) – 5.9 percent in the second quarter (Q2), 5.3 percent in the third quarter (Q3), and 5.8 percent in the fourth quarter (Q4), with risks, broadly balanced. The retail inflation for the Q1 financial year 2022-23 (FY23) is projecting at 5.1 percent.

CFPI (The Consumer Food Price Index), or the inflation in the food basket, also eased on-month during August to 3.11 percent, from 3.96 percent in July, the data revealed.

The decline in the food basket was mainly due to a fall in vegetable prices (-)11.68 percent in August. Apart from this, cereals and products too slipped (-)1.42 percent. Sugar and confectionery prices too dipped (-)0.60 percent. On the other side, prices of fats and oils grew 33.00 percent last month, while egg prices saw a rise of 16.33 percent. Meat and fish gained 9.19 percent, and pulses and products rose 8.81 percent.

Apart from beverages and food, the fuel and light segment rose 12.95 percent, clothing and footwear gained 6.84 percent, and the housing segment inched up 3.90 percent.

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