Rate of Inflation lowest for second time in 5 years, some food items became cheaper
Retail Inflation in August: The annual inflation rate for the month of August has been released by the Labor Department of the Ministry of Finance. According to the report of the Department, there has been a slight increase in the retail inflation rate in August. But this inflation has been the lowest for the second time in five years. In August, India's retail inflation has increased marginally to 3.65 percent annually, while five years ago it was 3.54 percent annually. Inflation rate lowest for the second time in 5 years.
Food items became cheaper
While food Inflation Last month was at a 13-month low of 5.42 percent. Now this month it has increased marginally. Vegetable inflation increased by 10.71 percent in August, while it was 6.83 percent last month, however the rate of vegetables has increased.
Reserve Bank of India's range
Therefore core inflation rate has remained within the Reserve Bank of India's (RBI) range of 2-6 percent. However, it is still far from RBI's target, as stated by central bank governor Shaktikanta Das. A weak rupee, along with risks related to monsoon, are expected to keep inflation pressures elevated in the near future.
Economist forecast?
Price inflation would come in at 3.50 percent for August, slightly lower than the 3.54 percent of the previous month, forecast for the official data was from 3.10 percent to 4.91 percent.
Also read: PM Meet Paralympians: Prime Minister Modi will meet India's Paralympic team, after historic
Irregular monsoon
The rate of vegetables has increased. The reason for this may be concerns about irregular monsoon rains, which may affect crop yields and increase prices in the future. However Inflation rate for pulses and cereals was 13 percent and 7.31 percent. Inflation rate for fruits was 6.45 percent. Inflation rate for milk and milk products was 2.98 percent in August. The prices of these things have come down. Inflation rate for meat and fish, egg segments was recorded at 4.30 percent and 7.14 percent.
.