Home Retail Lower food prices ease India’s August retail inflation

Lower food prices ease India’s August retail inflation

By  
SHARE

Lower food prices eased India’s August to 3.69 percent from 4.17 percent in July, official data showed on Wednesday.

Lower food prices ease India's August retail inflation
Lower food prices eased India's August retail inflation to 3.69 percent from 4.17 percent in July

However, on a year-on-year (YoY) basis, the Consumer Price Index (CPI) in August 2018 was higher than in the corresponding period last year when it stood at 3.28 percent.

According to the data furnished by the Central Statistics Office (CSO), the Consumer Food Price Index (CFPI) rose 0.29 percent in August from 1.30 percent in July 2018.

Product-wise, prices of milk-based products, eggs, meat and fish pushed the retail inflation higher on a YoY basis.

In contrast, deflation in the cost of vegetables, pulses and sugar capped the overall food prices.

Accordingly, the prices of milk-based products rose by 2.66 percent while cereals became dearer by 2.98 percent and meat and fish prices recorded a rise of 3.21 percent.

On a sub-category basis, vegetables’ prices reduced on YoY basis in August became by (-) 7 percent.

On the other hand, the category of ‘pulses and products’ became cheaper by (-) 7.76 percent and that of ‘sugar and confectionery’ by (-) 5.45 percent.

The sub-category of food and beverages during the month under consideration recorded a rise of 0.85 percent over the same period last year.

Among non-food categories, the ‘fuel and light’ segment’s inflation rate accelerated to 8.47 percent in August.