Consumer price inflation eases marginally to 9.52% in August

Consumer price inflation based on the consumer price index eased slightly to 9.52 per cent in August 2013, from 9.64 per cent in July, following a softening in the prices of almost all commodities, except vegetables.

August saw inflation in the food and beverages segment coming down to 11.06 per cent, against 11.24 per cent in the previous month, as per government data released on Thursday.

Prices of milk and milk products, clothing, bedding and footwear segments also softened month on month.

However, there was no reprieve in vegetable prices as they increased by 26.48 per cent as against inflation of 16.4 per cent in July. There was some softening in the prices of fruits in August month-on-month.

The corresponding provisional inflation rates for rural and urban areas for August 2013 stood at 8.93 per cent and 10.32 per cent, respectively.

The rate of fall in sugar prices was 7.3 per cent in urban areas and 0.3 per cent in rural regions. Prices of fuel and electricity declined to 7.58 per cent in August from 8.39 per cent in July.

However, for urban areas, CPI-based inflation rose to 10.32 per cent in August from 10.26 per cent in July. For rural areas, it fell from 9.14 per cent to 8.93 per cent.

The divergence in inflation has been recorded since June this year; in August, inflation in urban areas remained in double digits for the third consecutive month.

The revised final rates of inflation for rural and urban areas for July 2013 stood at 9.14 per cent and 10.18 per cent, respectively.

Although retail inflation has declined slightly ahead of the Reserve Bank's mid-quarter monetary policy review due on 20 September, inflation levels are much higher compared to the central bank's comfort levels.