Retail inflation in India decreased to 6.83 per cent in August from 7.44 per cent in July, according to data provided by the National Statistical Office (NSO) on Tuesday, but it remained above the Reserve Bank of India’s (RBI) tolerance level.
India’s industrial output increased in July by 5.7% compared to the same month a year earlier, according to government figures.
This is the seventh occurrence since July 2022 and the fourth time this year that the retail inflation rate, measured by the consumer price index (CPI), has exceeded the upper bound of the RBI’s medium-term inflation target’s 4+/-2% zone.
When determining the benchmark interest rate (repo rate), the RBI primarily considers retail inflation.
According to an estimate by the RBI, the country’s inflation is predicted to stay over 5% through the first quarter of 2024–2025 and is anticipated to reach 6.20% in the current quarter (July–September).
Food inflation in the nation decreased from 11.51 per cent in July to 9.94 per cent in August.
India’s urban CPI decreased from 7.20 to 6.59 per cent, while rural inflation decreased from 7.63 to 7.02 per cent in July.