A longer pause?

Retail inflation, factory output data make for a sobering read

In stark contrast to talk of deflation in the economy, India’s retail inflation, measured by the Consumer Price Index (CPI), grew by 3.36 per cent in August. This is the second straight rise after a 2.36 per cent increase in July. The two put together undermine the growing notion of a deflationary trend taking hold after the CPI growth had decelerated for three months before July. The latest triggers for the rise in prices have been a spike in fruit and vegetable prices as well as a hike in the house rent allowance. Moreover, the impact of the newly introduced