Retail inflation eases to 6.69% in August

New Delhi: Lower food prices pulled down India's August retail inflation to 6.69 per cent from 6.73 per cent in July, official data showed on Monday.

The data furnished by the National Statistical Office (NSO) showed that India's consumer food price index (CFPI) during the month under review was 9.05 per cent against 9.27 per cent reported for July 2020.

The CFPI readings measure changes in retail prices of food products.

"During the month of August 2020, NSO collected prices from 96.1 per cent villages and 96.4 per cent urban markets while the market-wise numbers of prices reported therein were 78.6 per cent for rural and 84.4 per cent for urban as compared to 87.9 per cent for rural and 93.9 per cent for urban in February 2020," the NSO said.

The data assumes significance as the Reserve Bank of India, in its last monetary policy review, maintained the key lending rates on account of elevated retail inflation.

The retail inflation, mainly taken into account by the RBI to arrive at its policy decisions, has been above the regulator's comfort level.

The government has mandated the central bank to restrict the inflation at 4 per cent (+/- 2 per cent).