CPI inflation accelerates to 3.4% in August 2017

Core CPI inflation moves up to 4.4% in August 2017

The all-India general CPI inflation accelerated to 3.36% in August 2017 (new base 2012=100), compared with 2.36% in July 2017. The corresponding provisional inflation rate for rural area was 3.30% and urban area 3.35% in August 2017 as against 2.41% and 2.17% in July 2017. The core CPI inflation increased to 4.36% in August 2017 compared with 3.80% in July 2017. The cumulative CPI inflation was lower at 2.47% in April-August FY2018 compared with 5.62% in April-August FY2017.

Among the CPI components, inflation of food and beverages accelerated to 1.96% in August 2017 from 0.43% in July 2017 mainly contributing to the increase in CPI inflation. Within the food items, the inflation increased for vegetables to 6.16%, fruits 5.29%, pulses and products (-) 24.43%, prepared meals, snacks, sweets etc 5.23% and egg (-) 1.67%. However, the inflation eased for oils and fats to 1.03%, meat and fish 2.94%, milk and products 3.58% and sugar and confectionery 7.35%. The inflation also declined for cereals and products to 3.87%, non-alcoholic beverages 2.55% and spices (-) 1.74% in August 2017.

The inflation for housing increased to 5.58%, while that for miscellaneous items was higher at 3.85% in August 2017. Within the miscellaneous items, the inflation for transport and communication increased to 3.71%, health 4.33%, household goods and services 4.24% and recreation and amusement to 3.67%, while it eased for education 4.40% in August 2017.

The inflation for clothing and footwear increased to 4.58%, while the CPI inflation of fuel and light also rose to 4.94% in August 2017.

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