Retail Inflation Rises to Eight-Month High in August

New Delhi: India’s retail inflation, based on the Consumer Price Index (CPI), rose to 4.82% in August this year, according to data released by the Ministry of Statistics and Programme Implementation.

In July, the CPI was at 4.45%, in a rise largely driven by food prices.

This is the highest in the eight months for which inflation data is available under the new CPI series which considers 2024 as the base year.

Rural areas continue to feel a higher rate of price rise than urban areas. Retail inflation stood at 5.23% in rural areas, compared to 4.31% in urban areas.

The Consumer Food Price Index recorded a year-on-year inflation of 5.95% in August. Here too, the rural areas suffered more. Food inflation stood at 6.13 % in rural areas and 5.64% in urban areas.

The government data says that personal care, social protection and miscellaneous goods and services record the highest inflation at 15.17%.

Inflation in restaurants and accommodation services is also high, at 8.38%. Inflation in paan, tobacco and intoxicants was recorded at 4.71%, while transport services registered inflation of 4.60%. Education services saw inflation of 3.73%, while clothing and footwear saw prices rise by 3.56%.

Health recorded the lowest inflation at 1.34% in August.

This is the last retail inflation number before the RBI’s Monetary Policy Committee meets from October 5 to 7.

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