India’s retail inflation based on Consumer Price Index (CPI) increased marginally to 3.21% in August from 3.15% in July, mainly due to costlier food items like meat and fish, vegetables and pulses. Though, it is lower as compared to 3.69% in August 2018. The previous high was 3.38% in October 2018. Besides, retail inflation is within the Reserve Bank India's target range of 4%, with deviation of 2% on either side. The overall food inflation, measured on consumer food price index (CFPI) stood at 2.99% in August, up from 2.36% in the previous month, while it was 0.29% in August 2018.
As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the CPI (Rural, Urban, Combined) on Base2012=100 for August 2019, stood at 2.18%, 4.49% and 3.21%, respectively, compared to 3.41%, 3.99% and 3.69%, respectively in August 2018. The index value of CPI for combined stood at 144.9. The data also showed that CFPI for all India Rural and Urban for August 2019 stood at 0.85% and 7.07%, respectively, compared to 1.14% and -1.21%, respectively in August 2018. The index value of CFPI for combined stood at 144.7 for the month of August.
Prices in food and beverages category increased by 2.96% during the month under review, whereas clothing and footwear prices increased by 1.23%. Housing inflation stood at 4.84% during August 2019. Meanwhile, fuel and light category saw prices decline by 1.70% during August. Inflation in meat and fish basket was 8.51%, pulses and products 6.94% and vegetables 6.9%.The retail inflation in health was recorded at 7.84% and in recreation and amusement at 5.54%. Personal care and effects segment saw prices rise by 6.38% during August. Inflation rate in the education segment was recorded at 6.10% in August.
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