Retail Inflation in India Falls to 6.83% in August, Lowest Since February

New Delhi: Retail inflation in India fell to 6.83% in August from 7.44% in July, primarily driven by a decline in food prices, according to official data.

The Consumer Price Index (CPI)-based inflation stood at 6.83% in August 2023, down from 7.44% in July 2023. This is the first time since February 2023 that retail inflation has fallen below 7%.

The decline in retail inflation was led by a sharp drop in food inflation, which fell to 9.94% in August from 11.51% in July. Food inflation is driven by the prices of essential commodities such as cereals, pulses, vegetables, and milk.

The fall in food inflation was partly due to the government’s measures to control prices, such as the ban on wheat exports and the release of buffer stocks of food grains.

Despite the fall in retail inflation, it is still higher than the Reserve Bank of India’s (RBI) target of 4%. The RBI has said that it will continue to take steps to bring inflation under control.