New Delhi: India’s retail inflation measured by consumer price index (CPI) eased to 6.83% in August 2023 from 7.44% in the previous month, according to data released by Ministry of Statistics & Programme Implementation (MoSPI) on Tuesday.
The CPI-based inflation had climbed to 15-month high in July primarily driven by high food prices.
In August, food inflation stood at 9.94% as compared to 11.51% in July adding to the worries of the government and Reserve Bank of India (RBI).
The latest retail inflation number is still above the RBI’s upper tolerance band of 6%.
Last month, rural inflation rate was 7.02% while urban inflation was a tad lower at 6.59%.
The official data showed vegetable inflation was 26.14% in August this year while cereals and products inflation print came in at 11.85%.
Vegetable and ‘cereal and products’ inflation in July were 37.34% and 13.04%, respectively.
The RBI in its latest forecast has projected inflation at 5.4% in FY24 with Q2 at 6.2%, Q3 at 5.7%, and Q4 at 5.2% assuming normal monsoon.
The RBI is tasked to maintain price stability in the country and ensure retail inflation in the range of 2-6%.