Retail inflation eased to 7.5 per cent in August on lower food prices

New delhi date. 13

Retail inflation eased to 7.5 per cent in August, according to government data. For the second month in a row, retail inflation has been in the comfort zone of the Reserve Bank of India.

According to data released by the National Statistics Office (NSO), retail inflation, as measured by the Consumer Price Index (CPI), stood at 7.5 per cent in July 2011 and 6.5 per cent in August 2020.

Food inflation stood at 9.11 per cent in August 2011. Last month, food inflation stood at 7.5 per cent. Inflation ranging from 3% to 5% is considered in the RBI's comfort zone. However, retail inflation has been above four per cent for the last two years.

A statement issued by the Ministry of Statistics and Program Implementation said that the inflation rate is determined after the prices of goods are collected from 1118 urban markets and 1191 villages.

The RBI had pegged inflation at 6.5 per cent in the first quarter, 7.5 per cent in the second quarter, 7.5 per cent in the third quarter and 7.5 per cent in the fourth quarter of FY 2021. Retail inflation is projected at 5.1 per cent for the first quarter of FY 205-2.

In May 2011, retail inflation stood at 7.5 per cent. In comparison, July and August saw a decline in retail inflation. Industrial output rose 11.5 per cent in July. The good performance of the manufacturing, mining and power sectors has led to an increase in industrial production.