CPI inflation eases to 9.52% in August

Food prices for consumers also eased to an annual 11% in August

Consumer Price Index (CPI)-based inflation moderated to 9.52 per cent in August from 9.64 per cent in July, following a fall in inflation for most items, excluding vegetables.

However, for urban areas, CPI-based inflation rose to 10.32 per cent in August from 10.26 per cent in July. For rural areas, it fell from 9.14 per cent to 8.93 per cent.

The divergence in inflation has been recorded since June this year; in August, inflation in urban areas remained in double digits for the third consecutive month.

Food and beverages inflation eased to 11.06 per cent in August from 11.24 per cent in July. However, vegetable inflation provided no respite - it rose to 26.48 per cent from 16.4 per cent in July.

Inflation for fruit, milk and milk products, clothing, bedding and footwear also fell in August compared to July. Sugar prices fell 2.5 per cent year-on-year in August, against a rise of 5.3 per cent in July.

The rate of fall in sugar prices was 7.3 per cent in urban areas and 0.3 per cent in rural regions. Fuel and light inflation declined to 7.58 per cent from 8.39 per cent in July.

The fall in retail inflation comes days ahead of the Reserve Bank of India's mid-quarter monetary policy review on September 20. Despite the fall, the divergent trend in urban and rural areas might dissuade the central bank from easing its monetary stance.