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Retail inflation slows to 6.83% as vegetable prices decline
Mint Mumbai
|September 13, 2023
Retail inflation moderated to 6.83% in August from a 15-month high of 7.44% in July due to easing vegetable prices, offering a measure of relief to the Indian central bank and bond investors.
Consumer Price Index (CPI)-based inflation, however, continued to exceed the Reserve Bank of India’s (RBI’s) target range of 2-6%. A Mint poll of 18 economists estimated retail inflation to slow to 7% in August.
Food inflation, measured by the Consumer Food Price Index, which accounts for nearly half of the overall consumer price basket, slowed to 9.94% in August from 11.51% in July, according to data released by the ministry of statistics and programme implementation (MoSPI) on Tuesday.
The cooling of inflation was led by vegetables amid some moderation in prices of clothing and footwear, housing and miscellaneous items.
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