India's Retail Inflation Eases To 3.65 Per Cent In August 2024
Date
9/13/2024 2:27:59 PM
(MENAFN- KNN India)
New Delhi, Sep 13 (KNN)
India's retail inflation rate fell to 3.65 per cent in August 2024, marking a significant decrease from 6.83 per cent in the same month last year, according to the latest All India Consumer Price index (CPI) data released on Thursday, September 12, 2024.
This figure represents the second instance in nearly five years where overall retail inflation has dropped below the Reserve bank of India's (RBI) 4 per cent inflation target, with the previous occurrence in July 2024.
The RBI maintains an inflation target of 4 per cent with a tolerance band of +/- 2 percentage points, allowing for a range between 2 per cent and 6 per cent.
Despite the year-on-year decrease, the August 2024 inflation rate showed a slight uptick of 110 basis points compared to the previous month's rate of 3.54 per cent.
The data revealed contrasting trends in urban and rural areas. Urban inflation declined to 3.14 per cent in August 2024, down from 6.59 per cent in August 2023.
Similarly, rural inflation decreased to 4.16 per cent in August 2024, compared to 7.02 per cent in August 2023.
The Combined Consumer Food Price Index (CFPI), which measures food inflation, also showed a downward trend. Overall food inflation stood at 5.66 per cent in August 2024, a substantial decrease from 9.94 per cent in August 2023.
Urban food inflation fell to 4.99 per cent from 10.42 per cent year-on-year, while rural food inflation declined to 6.02 per cent from 9.67 per cent in the same period last year.
These figures indicate a general easing of inflationary pressures across both urban and rural sectors, particularly in food prices, which often play a crucial role in overall inflation trends.
The continued moderation in inflation rates may have implications for the RBI's monetary policy decisions in the coming months, as the central bank seeks to balance economic growth with price stability.
(KNN Bureau)
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