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Retail inflation based CPI eases to 5.05% in August

14 Sep 2016 Evaluate

Retail inflation, based on Consumer Price Index (CPI) eased at 5.05% in August from 6.07% in July, on account of decline in food prices especially vegetables. CPI inflation for urban sector was 4.22% in August, while for rural segment it was 5.87%.

As per the data released by the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, on Base 2012=100, index value for CPI (General) for Rural was 133.5, for Urban was 128.4 and for combined stood at 131.1 for the month of August. Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined for August 2016 stood at 6.32%, 5.10% and 5.91% respectively compared to 3.02%, 0.84% and 2.20% in the month of August 2015.

Food inflation slowed to 5.91% from 8.35%, with high pulses prices being offset by weak vegetable prices. Sugar and confectionary inflation rose to 24.75% against 21.91% in July. There was uptick in prices of pulses and products with inflation standing at 22.01%. Food and beverages became expensive by 5.83%, while fuel and light became costly by 2.49%. Going further the fall in inflation bolster hopes for an interest rate cut by the Reserve Bank of India, which is targeting to bring CPI down to 5% by January 2017.

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