India's consumer price inflation lower at 6.83% in August

Consumer price inflation in the country, based on the consumer price index, declined to 6.83 per cent in August 2023 from 7.44 per cent in July and 7.00 per cent in August 2022, although still higher than the Reserve Bank’s tolerance level.

Data released by the Central Statistics Office (CSO) showed that consumer price inflation continued to show volatility in the 2022-23 financial year as well. Consumer price inflation in India, which hit a high of 5.52 per cent in March 2022 remained volatile ever since.

Consumer price inflation for rural areas stood at 7.02 per cent in August  2023 against 7.63 per cent in July and 7.15 per cent in August 2022, while the inflation rate for urban consumers stood at 6.59 per cent in August 2023 against 7.20 per cent in July and 6.72 per cent in August 2022.

Overall food price inflation rate declined to 9.94 per cent in August 2023 from 11.51 per cent in July but higher compared to 7.62 per cent in August 2022.

Food price inflation for rural areas stood at 9.67 per cent in August 2023 against 11.04 per cent in July and 7.60 per cent in August 2022 while food price inflation rate for urban consumers stood at 10.42 per cent in August 2023 against 12.37 per cent in July and 7.55per cent in August 2022.

While food prices have remained volatile to some extent, the rising trajectory of global crude prices and a broad-based surge in international commodity prices and logistics costs have combined to impact core prices. This has been further boosted by a steady rise in consumption demand.