Retail inflation eases to 7.8% in August

Retail food inflation rose to 9.42% in August compared to 9.36% in July

Easing prices of vegetables, cereals and petroleum products brought down retail inflation marginally to 7.8% in August.

Consumer Price Index (CPI) based or retail inflation stood at 7.96% in July. In August 2013, retail inflation was at 9.52%.

However, food inflation during the month under review rose to 9.42% over 9.36% in July, an official release said today.

The rate of price rise in vegetables stood at 15.15% in August as against 16.88% in the previous month.

Rate of price increase in cereals and its products turned lower at 7.39% and that for fuel and light it came down at 4.15%.
 

However, prices of fruits during the month went up with 24.27% rate of inflation.

Inflation in milk and milk products increased to 11.70% during the month under review. Also, pulses and its products were costlier at 6.88%.

Amongst others, food and beverages witnessed no change in price rise at 9.16%, while non-alcoholic beverages prices went down at 6.24% in August.

Eggs, fish and meat were costlier at 7.71% during the month.

Inflation in rural and urban areas in August was 8.35% and 7.04%, respectively. In July, it was 8.37% and 7.42%.

The Reserve Bank will unveil its fourth bi-monthly monetary policy statement on September 30, 2014.

In its last policy statement in August, RBI had kept key interest rates unchanged--third time in row -- in view of the inflationary expectations and uncertain monsoon conditions.