August retail inflation eases to 6.83% as vegetable prices cooled

The headline retail inflation for the month August fell to 6.83% from 7.44% in July. The drop in retail inflation comes as vegetable prices cooled down with the country’s food inflation easing to 9.94% in August from 11.51% in July.

However, despite easing down the data by the National Statistics Office shows that this is the fourth instance the inflation has stayed outside the upper bound of the Reserve Bank of India's (RBI) tolerance limit of 2-6%. It is also the 47th month in a row that it has stayed above the central bank's medium-term target of 4%.

Also Read: July retail inflation at 7.44%; rises to 15 month high as vegetable prices surge

The Reserve Bank of India (RBI) has projected the CPI inflation at 5.4% for 2023-24

Meanwhile, the July Index of Industrial Production (IIP) growth has risen to 5.7% in July against 2.2% in the same month a year ago.