New Delhi, Sep 12 (Mayank Nigam) India’s retail inflation measured by consumer price index (CPI) inched up marginally to 3.65% in August 2024 on annualised basis from 3.60% in the previous month, as per data released by Ministry of Statistics & Programme Implementation on Thursday. With this, retail inflation has remained below the Reserve Bank of India’s medium-term target of 4%. The central bank is tasked to maintain price stability in the country and mandated to ensure retail inflation at 4% with a margin of 2% on either side. “Year-on-year inflation rate (3.65%) based on All India Consumer Price Index (CPI) for the month of August, 2024, is second lowest in the last five years. Corresponding inflation rates for rural and urban are 4.16% and 3.14%, respectively,” an official release said.
Food inflation for August 2024 was the second lowest since June, 2023. Year-on-year inflation rate based on the All India Consumer Food Price Index (CFPI) number stood at 5.66% in August this year. Decline in inflation was observed in the subgroups of ‘Spices’, ‘Meat and Fish’ and ‘Pulses and products’ among others. Commenting on the latest inflation numbers, ICRA chief economist Aditi Nayar said, “With the base effect normalising, we anticipate a sharp pickup in the CPI inflation to 4.8% in September 2024, and range between 4.4% and 4.7% in H2 FY2025.” “Notwithstanding the anticipated hardening in September 2024, the average CPI inflation will undershoot the MPC’s (Monetary Policy Committee) Q2 FY2025 estimate of 4.6%,” she further said. The Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) last month decided to keep the policy repo rate unchanged at 6.50% for the ninth consecutive time.