Retail inflation above RBI's upper limit for fifth straight month

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Retail inflation above RBI's upper limit for fifth straight month

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Retail inflation stood at 6.7 per cent in August 2020, and is at the same level as that of the previous month. Elevated inflation in the food components and miscellaneous segment continues to keep retail inflation high.

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Inflation in food and beverages eased marginally to 8.3 per cent in August 2020 compared with 8.5 per cent in the previous month. Although the moderation partially reflects reduction of supply side disruptions, food inflation continues to remain at elevated level.

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Inflation in pan, tobacco and intoxicants rose to 11.2 per cent in August 2020 compared with 10.5 per cent in the previous month and 5 per cent in the corresponding month last year.

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Inflation in case of clothes and footwear (2.8 per cent) and housing (3.1 per cent) have not seen too much movement from the previous month.

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Retail inflation in terms of housing has remained constant in the last two months. It recorded inflation of nearly 3 per cent in August 2020.

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Inflation in case of fuel components rose to a 5-month high of 3.1 per cent in August 2020 compared with 2.7 per cent in July 2020 and (-) 1.7 per cent in August 2019. A low base effect and rise in prices of diesel and kerosene have led to the uptick from the previous month.
Story: Shivani Sharma
Design: Pragati Srivastava