Retail inflation reduces to 5.05 percent in August, fall beats predictions

New Delhi: Retail inflation eased to a five-month low of 5.05 per cent in August, mainly because of a slower rate of price increase in vegetables as well as food and beverages.

The rate of price growth, based on the consumer price index (CPI), was the lowest since March 2016 when it stood at 4.83 per cent. In the preceding month July, CPI inflation was at a nearly two-year high of 6.07 per cent. In August 2015, the rate of price rise was 3.74 per cent.

Lower inflation in vegetables in August helped as the rate of price rise stood at a mere 1.02 per cent against 14.06 per cent in July, government data showed today.

Food and beverage prices remained sticky as they grew 5.83 per cent in August in comparison to 7.96 per cent in July. However, the overall consumer food inflation in August fell to 5.91 per cent as against 8.35 per cent in July.

Pulses roiled the scene at an inflation print of 22.01 per cent against 27.53 per cent in July. However, a majority of food items covered by the Ministry of Statistics and Programme Implementation (MOSPI) to measure retail inflation showed a firm trend during the month.

Cereals and products turned costlier, with inflation at 4.11 per cent. The readings for eggs came in at 9.58 per cent, milk and products 4.36 per cent and oil and fat 4.94 per cent.

Among others, the rate of price rise in fruits was at 4.46 per cent. CPI inflation in August for the urban segment was 4.22 per cent while that of rural areas read 5.87 per cent.