After a record low Wholesale Price Index inflation numbers, consumer price (CPI) inflation too eased for a second straight month in August at 3.66 percent compared with 3.69 in July 2015, although prices of some items including that of pulses moved up. The base effect played a major role as CPI had come in at around 7 percent in August 2014, while core CPI was at 6 percent, food inflation was at 8.6 percent and vegetable inflation was at 10.8 percent in the same month last year.
Consumer Price Index numbers on Base 2012=100 for Rural, Urban and Combined for the Month of August 2015 stood at 4.47 percent, 2.67 percent and 3.66 percent respectively compared to 7.67 percent, 6.39 percent and 7.03 percent respectively in August 2014. On the same time Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined for the month of August 2015 stood at 3.02 percent, 0.84 percent and 2.20 percent respectively. The Core Inflation (excluding food and fuels) decelerated to 4.1 percent in August 2015 from 4.3 percent in July 2015, continuing the momentum of decelerating core inflation.
Food and beverages, which accounts for 46 percent of the CPI basket showed marginal uptick compared to same month of last year. Food inflation for the month of August was at 2.20 percent versus 2.15 percent month-on-month (MoM), while vegetable price inflation stands at -6.36 percent against -7.93 percent (MoM). Cereals and products inflation stood at 1.22 percent versus 1.06 percent in July.
The government has said that inflationary pressures continued to moderate across-the-board in August 2015. Chief Economic Advisor Arvind Subramanian said the key point in the data is that the core momentum has decelerated over the last three months 'so that's also an encouraging sign of abetting inflationary pressures.
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