Retail inflation cools in August at 6.83%, but stays above target | Latest News India - Hindustan Times
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Retail inflation cools in August at 6.83%, but stays above target

Sep 12, 2023 06:18 PM IST

Consumer inflation rose at a slower pace in August, compared to July’s 7.44%, which was a 15-month high

NEW DELHI: Retail inflation slowed in August to stand at 6.83% from a year ago but continued to be above the Reserve Bank of India’s target of 4% (+/-2), official data released on Tuesday showed.

Consumer price inflation exceeded the central bank’s target range for the second straight month (REUTERS)
Consumer price inflation exceeded the central bank’s target range for the second straight month (REUTERS)

Consumer inflation rose at a slower pace in August, compared to July’s 7.44%, which was a 15-month high, mainly on the back of easing prices of edible oil and a marginal decline in vegetable inflation.

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The combined food price index eased to 9.94% in August from a year ago, compared to a rise of 11.51% in the previous month, the data showed.

Consumer price inflation exceeded the central bank’s target range for the second straight month, driven by a sharp spike in tomato and vegetable prices.

Cereal prices remained in double digits and rose 11.6% in August as compared with 13% in July. Milk and milk products inflation came in at 7.7% as compared to a rise of 8.34% in the previous month.

Vegetable prices, still high, rose 26.1% against a staggering 37.34% rise in July, while prices of oils and fats declined by 15.3% after dropping by 16.8% in the previous month.

Battling high prices, the government has regulated trade in most food items to cool consumer inflation. India has banned rice and wheat shipments abroad, levied a 40% duty on onion export and allowed duty-free imports of pulses. Analysts expect inflation to cool in September when new harvests will hit the markets.

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  • ABOUT THE AUTHOR
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    Zia Haq reports on public policy, economy and agriculture. Particularly interested in development economics and growth theories.

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