Decline in inflation is observed in the subgroups of ‘Spices’, ‘Meat and Fish’ and ‘Pulses and products’ etc.
(Photo: AFP)
The Consumer Price Index (CPI)-based headline retail inflation stood at 3.65% in August. Corresponding inflation rates for rural and urban areas are 4.16% and 3.14%, respectively.
This is the second lowest in the last five years.
Decline in inflation is observed in the subgroups of ‘Spices’, ‘Meat and Fish’ and ‘Pulses and products’ etc.
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The data released by the National Statistical Office (NSO) showed that food inflation rose slightly to 5.66% from 5.42% in July, driven by acceleration in the prices of fruits (6.45%), vegetables (10.71%), and non-alcoholic beverages (2.40%).
Food inflation for August 2024 is the second lowest since June, 2023. Year-on-year inflation rate based on the All India Consumer Food Price Index (CFPI) number is 5.66% (Provisional) for the month of August, 2024. Corresponding inflation rate for rural and urban areas is 6.02% and 4.99%, respectively.
Further, the data said tomato has exhibited the lowest year on year inflation (-47.91%) as well as lowest MoM change in index (-28.8%).
Inflation remained below the RBI’s 4% inflation target for the second time in nearly five years.
Separately, the growth in the index of industrial production (IIP) increased to 4.8% in July from the upward revised figure of 4.7% in the preceding month.
The growth rates of the three sectors, Mining, Manufacturing and Electricity for the month of July 2024 are 3.7%, 4.6% and 7.9% respectively.
MoSPI said that within the manufacturing sector, top three positive contributors for the month of July 2024 are: Manufacture of basic metals (6.4%), Manufacture of coke and refined petroleum products (6.9%), and Manufacture of electrical equipment (28.3%).
Headline inflation, after remaining steady at 4.8% during April and May 2024, increased to 5.1% in June, primarily driven by the food component, which remains stubborn.
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