Retail inflation rises to 3.36% in August, hits five-month high

NewsBharati    13-Sep-2017
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New Delhi, September 13: Retail inflation rose to a five-month high of 3.36 percent in August due to costlier vegetables and fruits. The rate however is still below the Reserve Bank of India's (RBI) medium-term target of 4 percent.

According to the data released by the Central Statistics Office, the Consumer Price Index (CPI) based inflation stood at 2.36 percent in the previous month. The CPI had risen by 5.05 percent for the month of August, a year ago. 

The August inflation number is the highest since March this year, when it was recorded at 3.89 percent. Overall food inflation in August also moved up, reversing the deflationary trend, to 1.52 percent.

In another set of data, the IIP or Index of Industrial Production for the month of July went up by 1.2 per cent. It has slipped from 4.5 per cent in the corresponding period, a year ago. The cumulative growth in IIP for the period April-July 2017 over the corresponding period of the previous year stands at 1.7 per cent.

The resulting hit from a shortage of production and supply of vegetables such as tomatoes and onions - which are basic ingredients in Indian kitchens - suggested inflation will be elevated in coming months.

Early last month the Reserve Bank of India cut interest rates - making it the first Asian central bank to ease this year - on a subdued economic outlook.

Retail inflation consumers Consumer Price Index compared food goods vegetables fruits Economy Inflation