India's consumer price inflation eases further to 5.30% in August
14 September 2021
Consumer price inflation in the country, based on the consumer price index, eased further to 5.30 per cent in August 2021 from 5.59 per cent in July, remaining within the 4+/- 2 per cent ceiling set by the Reserve Bank of India.
Data released by the Central Statistics Office (CSO) showed that consumer price inflation remained volatile for most of the current financial year. It hit a high of 5.52 per cent in March and showed a downward trend in April only to climb up to 6.30 per cent in May 2021. However, there has been a ownward trend since June this year.
Consumer price inflation for rural areas stood at 5.28 per cent i August 2021 against 5.49 per cent in July, while the inflation rate for urban consumers declined to 5.32 per cent in August 2021 from 5.82 per cent in July.
Food price inflation rate eased to 3.11 per cent in August 2021 from 3.96 per cent in July.
While food price inflation for rural areas stood lower at 3.08 per cent in August 2021 from 3.55 per cent in July, food price inflation rate for urban consumers declined to 3.28 per cent in August 2021 from 4.56 per cent in July.
While food prices, except for items like edible oils, have moderated to some extend, the rising trajectory of global crude prices and a broad-based surge in international commodity prices and logistics costs is having an impact on core prices, although weak demand conditions may temper the pass-through to consumer inflation to some extent.