India’s retail inflation increased to 3.65 per cent in August, according to the government data released on Thursday.
Even though it was a marginal increase from the 3.60 per cent of July, it was within the Reserve Bank of India’s (RBI) target of 4 per cent. This time last year, the retail inflation was 6.83 per cent.
This was slightly above the forecasts. A Reuters poll of 53 economists estimated inflation for July to be 3.50 per cent, but the agency said the vegetable prices have driven the inflation up. It said vegetable prices rose by 10.71 per cent year-on-year in August and by 6.83 per cent month-on-month.
In July, the figures fell below the 4 per cent-mark for the first time in around five years.
The food inflation was also marginally up from the previous month’s 5.42 per cent to 5.66 per cent in July, according to the data.
The RBI has a target of keeping the inflation at 4 per cent with a margin of plus or minus 2 per cent.
In the near-term, a weak rupee and monsoon-related risks are expected to keep inflation pressures elevated, according to The Economic Times.
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India’s retail inflation increases to 3.65% in August, food inflation rises to 5.66%
