August retail inflation eases to 7.8% on cheap veggies, fuel cost

Easing prices of vegetables, cereals and petroleum products brought down retail inflation marginally to 7.8 % in August.

Consumer Price Index (CPI) based or retail inflation stood at 7.96 % in July. In August 2013, retail inflation was at 9.52 %.

However, food inflation during the month under review rose to 9.42 % over 9.36 % in July, an official release said today.

The rate of price rise in vegetables stood at 15.15 % in August as against 16.88 % in the previous month.

Rate of price increase in cereals and its products turned lower at 7.39 % and that for fuel and light it came down at 4.15 %.

However, prices of fruits during the month went up with 24.27 % rate of inflation.

Inflation in milk and milk products increased to 11.70 % during the month under review. Also, pulses and its products were costlier at 6.88 %.

Amongst others, food and beverages witnessed no change in price rise at 9.16 %, while non-alcoholic beverages prices went down at 6.24 % in August.

Eggs, fish and meat were costlier at 7.71 % during the month.

Inflation in rural and urban areas in August was 8.35 % and 7.04 %, respectively. In July, it was 8.37 % and 7.42 %.

The Reserve Bank will unveil its fourth bi-monthly monetary policy statement on September 30, 2014.

In its last policy statement in August, RBI had kept key interest rates unchanged--third time in row -- in view of the inflationary expectations and uncertain monsoon conditions.