Retail Inflation: Retail inflation declined marginally to 5.3 per cent in August due to lower prices of food products, including cereals and vegetables.
Retail Inflation: Retail inflation eased marginally to 5.3 per cent in August due to lower prices of food products, including cereals and vegetables. This information was given in the official figures released on Monday. However, the price of edible oil registered an increase during this period. This is the third consecutive month that retail inflation has come down and remains within the Reserve Bank’s satisfactory level.Also Read – Retail vehicle sales up 14 percent in August, commercial vehicle sales up 98 percent
Inflation based on the Consumer Price Index was 5.59 per cent in July last month. Whereas in August a year ago, it was at 6.69 percent. According to the data released by the National Statistical Office (NSO), the inflation in food articles stood at 3.11 per cent in August from 3.96 per cent in the previous month, while it was at a high of 9.05 per cent in August 2020. Also Read – Share market update: Sensex slips over 200 points, banking stocks fall
Retail inflation had risen to 6.3 per cent in May. It was 4.23 percent in April. Since then it has been coming down continuously. Retail inflation stood at 6.26 per cent in June and 5.59 per cent in July. The Reserve Bank had kept the policy rates unchanged in its bi-monthly monetary review in August. The central bank primarily takes into account inflation based on the Consumer Price Index for deciding on its bi-monthly monetary review. Also Read – Flipkart Wholesale: Flipkart Wholesale expected to grow 3x in India
The government has given a target to the central bank to keep inflation in the range of 4 percent (up or down two percent). According to the NSO data, the prices of vegetables and cereals and products declined by 11.68 per cent and 1.42 per cent, respectively, but in the ‘oils and fats’ segment, the price increase was 33 per cent over the same period a year ago.
To keep the prices of edible oils under check during the festive season, the government has recently reduced the basic customs duty on palm, soybean and sunflower oils. The industry believes that this will reduce the retail price of oils by Rs 4 to 5 per liter. However, the ‘fuel and light’ segment still remains heavy on the pockets of the consumers. Inflation in this segment stood at 12.95 per cent.