Retail inflation softens slightly to 6.69% in August on dip in food prices; wholesale inflation up at 5-month high

Business
Typography

Inflation in meat and fish, milk and products and pulses categories also declined to 16.50 percent, 6.15 percent and 14.44 percent, respectively

The consumer price inflation softened marginally to 6.69 percent in August after softening the prices of some food items. However, the wholesale inflation rose slightly to a five-month high of 0.16 percent on costlier manufactured goods, said government data on Monday.

The consumer price index (CPI) based retail inflation was at 6.73 percent in July, as per data released by the National Statistical Office (NSO).

The food inflation has come down marginally to 9.05 percent as against 9.27 percent the previous month.

Inflation in meat and fish, milk and products and pulses categories also declined to 16.50 percent, 6.15 percent and 14.44 percent, respectively.

The rate of price rise in cereals and products category came down to 5.92 percent during the month under review from 6.96 percent in July.

On the other hand, the prices of eggs, fruits and vegetables rose with inflation print at 10.11 percent, 1 percent and 11.41 percent, according to the government data.

Retail inflation in the fuel and light category also increased to 3.10 percent.

The retail inflation is now stands above the Reserve Bank of India’s (RBI) comfort level, which is around 4 percent (+/- 2 percent).

The wholesale price index (WPI) based inflation, however, rose the most in five months, climbing 0.16 percent in August on increase in the prices of manufactured products.

WPI inflation had remained in the negative territory since April.

Inflation in food articles during August stood at 3.84 percent, led by vegetables and pulses at 7.03 percent and 9.86 percent, respectively.

In egg, meat and fish segment, it was 6.23 percent, according to a statement by the commerce and industry ministry.

The rate of price rise in potato was high at 82.93 percent, while in onion it was (-) 34.48 percent.

Fuel and power inflation declined marginally to 9.68 percent in August, as against 9.84 percent in the previous month.

Manufactured products, however, witnessed hardening of inflation at 1.27 percent in August, as against 0.51 percent in July.

With inputs from Agency

Image credit: The Indian Express

All Comments