India's retail inflation has gone up marginally to 3.65 per cent in August as compared to July, the data from the All India Consumer Price Index (CPI) said on Thursday. It is significantr to note that this is the second time in nearly five years that overall retail inflation fell below the Reserve Bank of India's 4% inflation target. The inflation target by the RBI is 4% with a tolerance band of +/- 2 percentage points, meaning that the target is within the range of 2% to 6%. As per the government data, industrial production grew 4.8 per cent in July against 6.2 per cent expansion a year ago.
Food inflation rises to 5.66 per cent in August
On the other hand, the food inflation, which accounts for around half of the overall CPI basket, went up to 5.66 per cent in August from a 13-month low of 5.42 per cent in the previous month, the data showed.
Notably, the headline inflation has stayed within the Reserve Bank of India's (RBI) tolerance range of 2-6 per cent. However, it is still away from RBI's target of "a durable 4 per cent," as stated by the central bank's Governor Shaktikanta Das.
Consumer Price Index was 3.6 per cent in July
The Consumer Price Index (CPI) based retail inflation was 3.6 per cent in July 2024 and 6.83 per cent in August 2023. Inflation in the food basket was 5.66 per cent in August, marginally up from 5.42 per cent in July, according to the data released by the National Statistical Office (NSO). The inflation also was below 4 per cent in July.
The government has tasked the Reserve Bank of India (RBI) to ensure that the CPI inflation remains at 4 per cent with a margin of 2 per cent on either side.
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