Retail inflation edges up to 3.65% in Aug

New Delhi: Retail inflation in August inched up to 3.65 per cent, though vegetables and pulses witnessed price rise in double digits, according to official data released on Thursday.

The retail inflation based on the Consumer Price Index (CPI), however, remained below the Reserve Bank’s median target of 4 per cent for the second month in a row. It was at a five-year low of 3.6 per cent in July. The headline inflation was 6.83 per cent in August 2023.

“Year-on-year inflation rate (3.65%) based on All India Consumer Price Index (CPI) for the month of August 2024, is second lowest in the last five years,” National Statistical Office (NSO) said. According the data released by NSO, inflation in vegetables was 10.71 per cent and in pulses and products at 13.6 per cent. The CPI was in negative in case of spices (-4.4%) and 'oils and fats' (-0.86%). The overall inflation in the food basket was at 5.66 per cent, marginally higher than 5.42 per cent in the preceding month. Food inflation for August 2024 is the second lowest since June 2023.

“At item level, ‘tomato' has exhibited the lowest year on year inflation (-47.91%) as well as lowest MoM change in index (-28.8%),” NSO said.

Inflation in case of 'fuel and light' segment too was in negative at (-) 5.31 per cent. The data showed that retail inflation was at 3.14 per cent at urban centres and 4.16 per cent in rural areas. The highest inflation was in Bihar at 6.62 per cent and lowest in Telangana at 2.02 per cent. The government has tasked the RBI to ensure inflation remains at 4 per cent with a margin of 2 per cent on either side. Inflation has remained below 6 per cent since September 2023.