India's retail inflation eases to four-month low of 5.3% in August

Retail inflation had breached the RBI's target of 2-6 per cent in April as the Covid-induced lockdown impacted supply

Retail inflation cooled to a four-month low of 5.3 per cent in August from 5.59 per cent in the previous month, led by subdued prices of food articles and a high base effect. Inflation based on the Consumer Price Index (CPI) remained within the Reserve Bank of India (RBI)’s tolerance band for the second consecutive month, according to the data released by the Ministry of Statistics and Programme Implementation, on Monday.

While economists estimate inflation to ease further in the coming months, they believe that the RBI will continue with its accommodative monetary policy stance and begin interest rate hikes only