The food inflation, which accounts for around half of the overall CPI basket, accelerated to 5.66 per cent in August from a 13-month low of 5.42 per cent in the previous month, the data showed.
With this announcement, the headline inflation has stayed within the Reserve Bank of India‘s (RBI) tolerance range of 2-6 per cent. However, it still remains away from RBI’s target of “a durable 4 per cent,” as stated by the central bank’s Governor Shaktikanta Das.
A weak rupee, coupled with monsoon-related risks, is expected to keep inflation pressures elevated in the near term.
A Reuters poll of 53 economists, estimated consumer price inflation to land at 3.50 per cent for August, only slightly down from the previous month’s 3.54 per cent. Forecasts for the official data ranged from 3.10 per cent to 4.91 per cent.
Inflation rate for India’s staples
The inflation rate for vegetables grew 10.71 per cent in August as against 6.83 per cent in the previous month. This can be attributed to concerns over erratic monsoon rains that could impact crop yields and push prices higher in the future.For pulses and cereals, the inflation rate stood at 13 per cent and 7.31 per cent, respectively. The inflation rate for fruits came in at 6.45 per cent. For milk and milk products, the inflation rate was 2.98 per cent in August. The inflation rate for meat and fish, egg segments were recorded at 4.30 per cent and 7.14 per cent, respectively.
Fuel inflation: The Fuel and light inflation rate for August stood at (-)5.31 per cent as against a (-)3.66 per cent in July.
Other sectors: For clothing & footwear and housing sectors, the inflation rates were 2.72 per cent and 2.66 per cent, respectively.