India's Retail Inflation At 3.65 Per Cent In August, Second Lowest In Five Years; Food Inflation Sees Slight Rise

India's retail inflation marginally rose to 3.65 per cent in August, the second-lowest in the last five years, data released on Thursday showed.

The retail inflation stayed under the Reserve Bank of India’s median target of 4 per cent for the second successive month in August, even as it inched up marginally to 3.65 per cent from an upwardly revised 3.6 per cent in July. 

Food inflation, which makes up nearly 50 per cent of the consumer price index (CPI) basket, climbed to 5.66 per cent in August, up from the 13-month low of 5.42 per cent recorded in July, the data showed.

Food inflation for August 2024 is the second lowest since June 2023, according to the NSSO data.

A weak rupee, alongside concerns about monsoon disruptions, is likely to maintain inflationary pressures in the coming months.

Vegetable inflation surged to 10.71 per cent in August, compared to 6.83 per cent in July.

The rise is likely due to concerns over erratic monsoon rains that could impact crop yields and push prices higher in the future.

Inflation for pulses and cereals hit 13 per cent and 7.31 per cent, respectively, while fruits registered an inflation rate of 6.45 per cent.

Milk and dairy products saw a 2.98 per cent rise in prices during August.

The inflation rate for meat and fish, egg segments were recorded at 4.30 per cent and 7.14 per cent, respectively.

Fuel and light inflation remained negative in August at (-)5.31 per cent, deepening from (-)3.66 per cent in July.

Inflation for clothing and footwear stood at 2.72 per cent, while housing inflation came in at 2.66 per cent for August.

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