Retail inflation down at 9.88% in Aug

Retail inflation, measured by movement in CPI-IW index, came down to single digit at 9.88 per cent in August from 11.25 per cent in the previous month on account of decline in prices of food items in certain areas.

"The point to point rate of inflation for the month of August is 9.88 per cent compared to 11.25 per cent in July 2010," the Ministry of Labour and Employment data said here.

The fall in retail inflation rate can be attributed to decline in prices of wheat, goat meat, fresh water fish, vegetables and fruits in certain parts of the country.

According to Consumer Price Index (Industrial Workers), the prices of cereals and vegetables declined in August by three points in Jharia centre.

However the index recorded an increase of 5 points in Rangapara Tezpur centre, four points each in Mariani Jorhat Munger Jamalpur, Giridih, Asansol and Chhindwara centres.

The maximum increase of 5 points in Rangapara Tezpur centre is mainly on account of increase in the prices of rice, mustard oil, green chillies and clothing items.

The data indicated increase of 4 points in Mariani Jorhat centre due to increase in the prices of rice, wheat flour, mustard oil, turmeric powder,  green chillies, vegetable and fruits.

In Asanol centre the increase was due to rice, wheat flour, milk, onion, firewood and clothing. In Chhindwara centre the hike was the outcome of increase in the prices of wheat, soyabeen oil, garlic and firewood.

However, the decrease of 3 points in Jharia centre was due to fall in the prices of wheat, goat meat, fish fresh, vegetables and fruits.

During August, the all india Consumer Price Index for Industrial Workers (CPI-IW) remained stationary at 178, the data indicated.

Food inflation climbed 0.98 percentage points to 16.44 per cent during the week ended September 18, from 15.46 per cent in the previous week.

Among food items, milk prices soared by 24.32 per cent during the week compared to the same period last year, while fruit rates rose by 15.13 per cent.