Login ID:
Password:
Partner Login
Contact Us : 7066511911

Retail Inflation Softens to 5.3% in Aug as Food Prices Ease

13 Sep 2021 8:55 pm
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

NEW DELHIm Sept 13 (Commoditiescontrol) - Subdued prices of food items like vegetables pulled down retail inflation for the third month in a row to 5.3 percent in August, within the RBI's comfort zone.

While the Consumer Price Index (CPI)-based retail inflation declined to 5.3 per cent in August from 6.69 per cent in the same month a year ago, food inflation dipped at a much faster pace to 3.11 per cent from 9.05 per cent in August 2020.

The food inflation was also lower than 3.96 per cent in preceding month of July.

Retail inflation, which rose sharply to 6.3 per cent in May from 4.23 per cent in April, has been on a downward trajectory since then. It was 6.26 per cent in June and 5.59 per cent in July this year.

The Reserve Bank, which mainly takes into account retail inflation to decide the monetary policy every two months, has been tasked by the government to keep it at 4 per cent, with a tolerance band of 2 per cent on either side.

As per the data released by the National Statistical Office (NSO) on Monday, inflation in 'vegetables' and 'cereals and products' contracted by 11.68 per cent and 1.42 per cent, respectively.

However, the rate of price rise was 33 per cent in the 'oils and fats' segment in August 2021 over the year-ago month.

In order to control rising edible oil prices during the festival season, the government recently slashed the base custom duties on palm, soyabean and sunflower oils. The move, industry said, could bring down retail prices by Rs 4-5 per litre.

The RBI has projected the CPI inflation at 5.7 per cent during 2021-22 -- 5.9 per cent in the second quarter, 5.3 per cent in third, and 5.8 per cent in the fourth quarter of the fiscal, with risks broadly balanced. CPI inflation for Q1 2022-23 is projected at 5.1 per cent.

(By Commoditiescontrol Bureau)


       
  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated
0.0

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  
   

Top | Post Comment  

Top 5 News
Downtrend Continues in Paddy, Rice Prices, Inclement We...
Gur : Raskat dhaiya quoted lower, other varieties trad...
Guar seed, gum prices drop on profit booking
Turmeric remains mixed at spot, futures end lower
Bearish tone in Jeera market continues due to profit b...
Top 5 Special Reports
US Cotton Net Export Sales for Nov 19-25 up 90% W/W at ...
US Soybean Net Export Sales for Nov 19-25 down 32% W/W ...
India produces 47 LMT sugar till November, 35 LMT expor...
India's GDP grows at 8.4% in Sept quarter
Weekly: ICE raw sugar futures edge lower amid robust su...
Copyright © CC Commodity Info Services LLP. All rights reserved.