CPI inflation flat at 3.7% in August 2015

Core CPI inflation declines to 3.8% in August 2015 from 4% in July 2015

The all-India general CPI inflation was nearly flat 3.66% in August 2015 (new base 2012=100), compared with 3.69% (revised) reading in July 2015. The corresponding provisional inflation rate for rural area was 4.5% and urban area 2.7% in August 2015 as against 4.4% and 2.9% in July 2015. The core CPI inflation declined to 3.8% in August 2015 from 4% in July 2015.

Among the CPI components, the inflation for food and beverages rose to 2.9% in August 2015 from 2.8% in July 2015. Within the food items, the inflation moved up for vegetables to (-) 6.4%, pulses & products 25.8%, cereals & products 1.2%, and oils & fats 3.1%. On the other hand, inflation eased for milk & products to 5.3%, meat and fish 5.8%, spices 8.4% and prepared meals, snacks, sweets etc. to 7.3% in August 2015.

The inflation of the pan, tobacco & intoxicants group declined to 9.3%, while inflation for clothing and footwear also declined slightly to 5.8% in August 2015.

The inflation for miscellaneous items dipped to 3.1% in August 2015 from 3.4% in July 2015, driven by fall in inflation for transport & communication to (-) 1%, education 6.1%, education 6.1%, health 5.4% and personal care 2.2% in July 2015.

However, the housing inflation rose to 4.7%, while the CPI inflation for fuel and light also moved up to 5.7% in August 2015.

The cumulative CPI inflation eased to 4.5% in April-August 2015 compared with 7.6% in April-August 2014. Core CPI inflation has declined to 4.2% in April-April 2015 from 7.1% reading in the corresponding period last year.

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