Inflation declines to 6.83% in Aug on softening food prices

New Delhi, September 12

Retail inflation declined to 6.83% in August after touching a 15-month high of 7.44% in July, mainly due to softening prices of vegetables, but still remains above the Reserve Bank’s comfort zone. The overall inflation in the food basket stood at 9.94% in August as against 11.51% in July, according to data released by the National Statistical Office on Tuesday. Retail inflation based on the Consumer Price Index (CPI) was at 7% in August 2022.

While the retail inflation declined to 6.83% in August, it still remains above the comfort level of the Reserve Bank of India (RBI), which has the mandate to ensure inflation remains at 4% with a margin of 2% on either side.

As per the data, inflation in the vegetable basket eased to 26.14% in August as against 37.4% in July.

The prices of ‘oil and fats’ products declined to 15.28% in August while there was low inflation in ‘meat and fish’, ‘eggs’, ‘sugar and confectionary’, ‘non-alcoholic beverages’, ‘fruits’ and ‘prepared meals and snacks’ on an annual basis.

The data also showed that inflation in the ‘housing’ was at 4.38% and ‘fuel and light’ at 4.31%.

Aditi Nayar, chief economist, ICRA, said within food items, inflation in vegetables fell to 26.1% in August from 37.4% in the previous month, contributing as much as 28 basis points of the 61 basis points decline in the inflation print between these months. — PTI 

Food inflation eases to 9.94%

• The overall inflation in the food basket stood at 9.94% in August as against 11.51% in July, according to data released by the National Statistical Office (NSO) on Tuesday
• Retail inflation based on the Consumer Price Index was at 7% in August 2022
• As per the data, inflation in the vegetable basket eased to 26.14% in August as against 37.4% in July