Retail inflation inches up to 3.65% in August

Retail inflation based on the Consumer Price Index (CPI) inched up to 3.65 per cent in August 2024, though vegetables and pulses witnessed price rise in double digits. However, the retail inflation remained below the Reserve Bank of India’s (RBI) median target of 4 per cent for the second month in a row. It was at a five-year low of 3.6 per cent in July. The headline inflation was 6.83 per cent in August 2023. Year-on-year inflation rate (3.65 per cent) based on All India Consumer Price Index (CPI) for the month of August, 2024, is second lowest in the last five years. Inflation in the food basket was 5.66 per cent in August, marginally up from 5.42 per cent in July.

The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) in its data has showed that Rural CPI (General) in August 2024 stood at 4.16 per cent over 4.10 per cent in July 2024. The Urban CPI (General) stood at 3.14 per cent in August as against 3.03 per cent in July. The index value for Rural, Urban and Combined CPI (General) stood at 195.4, 190.3 and 193.0 respectively, in August 2024. The price data are collected from selected 1114 urban Markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of August 2024, NSO collected prices from 100.0% villages and 98.6% urban markets while the market-wise prices reported therein were 88.3% for rural and 92.4% for urban.

According the data, the inflation rate for vegetables grew 10.71 per cent in August as against 6.83 per cent in the previous month. This can be attributed to concerns over erratic monsoon rains that could impact crop yields and push prices higher in the future. For pulses and cereals, the inflation rate stood at 13.60 per cent and 7.31 per cent, respectively. The inflation rate for fruits came in at 6.45 per cent. For milk and milk products, the inflation rate was 2.98 per cent in August. The inflation rate for meat and fish, egg segments were recorded at 4.30 per cent and 7.14 per cent, respectively. The Fuel and light inflation rate for August stood at (-)5.31 per cent as against a (-)3.66 per cent in July. For clothing & footwear and housing sectors, the inflation rates were 2.72 per cent and 2.66 per cent, respectively.