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Retail inflation cools to 10-month low of 3.69 pc in Aug

Press Trust of India  |  New Delhi 

Retail cooled to a 10-month low of 3.69 per cent in August -- below RBI's target of 4 per cent -- on the back of easing prices of fruits, vegetables and other food items, official data showed Wednesday.

The lower retail print comes amid a spike in petrol and diesel prices that have been on the rise since August 16. Also, the rupee has weakened in the recent weeks, making imports costlier.

The Index (CPI) based was at 4.17 per cent in July and 3.28 per cent in August 2017.

The previous low for CPI inflation was in October 2017, when it stood at 3.58 per cent. Inflation remained above RBI's targeted rate of 4 per cent since then.

The (CSO) data showed that inflation in the fell significantly to 0.29 per cent in August 2018 as against 1.37 per cent in the previous month.

Vegetable prices declined by 7 per cent in the month under review. The rate of price rise in fruits stood at 3.57 per cent, compared to around 7 per cent in July.

However, there was a moderate increase in inflation in the fuel and light segment. It rose to 8.47 per cent in August compared to about 8 per cent in July.

Diesel accounts for 40 per cent of India's fuel basket and is consumed mainly by the transport sector.

The of (RBI) will be factoring in inflation data while deciding the interest rate at its next bi-monthly meeting on October 5.

The central has been tasked to maintain the at the level of 4 per cent (with a margin of 2 per cent on either side).

Price data are collected from selected towns by the of the (NSSO) and from selected villages by the Price data are received through web portals, maintained by the

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, September 12 2018. 19:20 IST