Retail inflation declined marginally to 5.3 per cent in August due to lower food prices. This information was given in the official figures released on Monday. Inflation based on the Consumer Price Index was at 5.59 per cent in July last month. Whereas in August a year ago, it was at 6.69 percent. According to the data released by the National Statistical Office (NSO), inflation in food articles stood at 3.11 per cent in August as against 3.96 per cent in July.
The Reserve Bank had kept the policy rates unchanged in its bi-monthly monetary review in August. The central bank mainly takes into account inflation based on the Consumer Price Index for deciding on its bi-monthly monetary review. The Reserve Bank has projected the consumer price index based inflation to be at 5.7 percent in the current financial year 2021-22.
The central bank estimates that it will be 5.9 percent in the second quarter, 5.3 percent in the third and 5.8 percent in the fourth. At the same time, in the first quarter of the next financial year, retail inflation was estimated to be at 5.1 percent.
(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)