India’s annual consumer price inflation (Consumer Price Index) picked up in August to 10.03 percent,driven by a rise in food prices,government data showed on Tuesday.
India’s retail inflation is the highest among the BRICS group of emerging economies – Brazil,Russia,China,and South Africa – and is way above what the Reserve Bank of India (RBI) calls its comfort level.
RBI,the Reserve Bank of India,left interest rates unchanged on Monday despite big-ticket reforms by the government last week,and said its primary focus remained fighting stubbornly high inflation.
Food prices for consumers accelerated to 12.03 percent in August from 11.53 percent in July. The revised number of CPI reading for July remained at 9.86 percent.
Inflation as measured by India’s benchmark wholesale price index rose a higher-than-expected 7.55 percent in August from a year earlier,mainly driven by higher food prices due to deficient monsoon,data on Sept. 14 showed.
Soaring vegetable prices push up retail inflation to 10.03%
(PTI) Soaring vegetable prices pushed up the retail inflation to double digits at 10.03 per cent in August,up from 9.86 per cent in the previous month.
According to the Consumer Price Index (CPI) data released today,the highest rise in prices was for vegetables which recorded an increase of 20.79 per cent during the month.
In the urban areas,the CPI rose to 10.19 per cent during the month as compared to 10.10 per cent in July. The retail price rise in rural areas worked out to be 9.90 per cent during August up from 9.76 per cent in the previous month.
The Consumer Price Index for August,however,did not capture the impact of hike in diesel price announced by the government on September 13 to help the Oil Marketing Companies (OMCs) to reduce their under recoveries.
The Consumer Price Index for food and beverages section during August increased by 12.03 per cent,clothing,bedding and footwear by 10.71 per cent and fuel and light by 7.55 per cent.
Among the individual segments,steep rise in retail price was noticed in case of oil and fats (18.41 per cent),followed by sugar (17.51 per cent) and pulses and products (16.04 per cent).
The Reserve Bank in its mid-quarter monetary policy yesterday had raised concerns about the price situation saying “as inflationary tendencies have persisted,the primary focus on monetary policy remains the containment of inflation and anchoring of inflation expectations.”
The central bank had refrained from reducing the key pending rates despite persistent pressure from industry to cut them to promote sagging economic growth.