Retail inflation for industrial workers eased to 4.79 per cent in August compared to 5.27% in July this year, mainly due to the lower price of certain food items.
Rising costs for households and companies are hitting confidence while pushing inflation faster than economists had expected only a few months ago
Retail inflation for farm and rural workers eased marginally to 3.9 per cent and 3.97 per cent, respectively in August
Snapping the two-month easing trend, WPI inflation rose in August and remained in double-digit for the fifth consecutive month. In July 2021, WPI inflation stood at 11.16 per cent
Fuel and power prices rose 26.09% in August year-on-year compared with 26.02% in July, while manufactured product prices rose 11.39% compared with 11.20% in the previous month.
Retail inflation had breached the RBI's target of 2-6 per cent in April as the Covid-induced lockdown impacted supply
Inflation is within RBI's 2%-6% comfort range for a second month. But it has been above the medium-term target of 4% for nearly two years
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However, WPI inflation remained in double digits for the third consecutive month in July, mainly due to a low base of last year. WPI inflation was (-) 0.25 per cent, in July 2020
Even as the food inflation rate dropped to 3.96 per cent from 5.15 per cent, certain items saw an elevated rate of price rise
This was the seventh consecutive occasion when the central bank maintained a status quo on policy rates
Policy makers voted 5-1 in favor of keeping the stance accommodative, a departure from the past when they were unanimous on the need to support growth amid the pandemic.
The RBI on Friday raised the retail inflation projection for the current fiscal to 5.7 per cent on account of supply side impediments, firm crude oil prices and higher cost of raw materials.
Retail inflation came at 6.30 per cent in May, and 6.26 per cent in June -- both above the upper limit of the RBI's target
Forecasts for gross domestic product were raised to a 9.2% expansion in the fiscal year ending March 2022, from the previous 9%, while the gross value added outlook edged down slightly to 9%.
Retail inflation remained elevated due to soaring fuel prices and costlier items in the food basket.
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Inflation based on Consumer Price Index (CPI) remained elevated due to soaring fuel prices and costlier items in the food basket
The higher prices of widely used raw materials such as edible oils, pulses, television panels, and chipsets are burdening household budgets and threatening the margins of leading manufacturers
India's retail inflation probably accelerated to a seven-month high in June on rising food and fuel prices, staying above RBI's comfort zone for a second straight month, a Reuters poll showed