Inflation based on consumer price index (CPI) eased further to 3.69 per cent in August from 4.17 per cent in July while food inflation plummeted to 0.29in August 2018. from 1.37 per cent in July, data released by Central Statistics Office (CSO) today showed.
Annual rate of food price inflation, which accounts for about half of the consumer price index (CPI), eased to 0.29 per cent in August 2018 from 1.37 per cent in July and 2.91 per cent in the month before.
Consumer price inflation for the rural areas stood at 3.41 per cent in August 2018 against 4.11 per cent in July 2018 and 3.22 per cent in August 2017.
Consumer price inflation for the urban areas stood at 3.99 in August 2018 against 4.32 per cent in July and 3.35 per cent in August last year.
Food price inflation for rural areas stood at 1.22 per cent in August 2018 against 2.18 per cent in July and 1.38per cent in August last year.
Food price inflation for urban areas stood at -1.21 in August 2018 against 0.36 per cent in July and 1.67 per cent in August last year.
The decline in consumer price inflation has reduced the chances of further rate increases by RBI after two successive increases of 25 basis points each after it raised inflation outlook to 4.8 per cent in the second half (October-March) of 2018-19 from its earlier projection of 4.7 per cent.