Retail Inflation Slows To 6.83% In August From 7.44% In July

Retail inflation in India fell to 6.83% in August from 7.44% in July, according to data provided by the National Statistical Office (NSO) on Tuesday, September 12.

The Consumer Price Index (CPI) inflation reading for August is 6.83%, which is 61 basis points lower than the 15-month high of 7.44% for July. Retail inflation remained above the Reserve Bank of India's (RBI) tolerance level.

This is the second consecutive month that inflation came in above the RBI's tolerance ceiling of 2-6%, which is the upper threshold. Additionally, for the 47th consecutive month, it has remained above the medium-term target of 4 percent set by the central bank.

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 July-September quarter.
The CPI for urban areas in India declined from 7.20 to 6.59& in July, while the CPI for rural areas declined from 7.63 to 7.02& in that same month.