India's August Consumer Price Index (CPI) was at 6.83 per cent, lower than the 15-month high of 7.44 per cent in July. The inflation in the previous month was high as prices of vegetables and other food items surged.
However, it still continues to remain above RBI's target of 6 per cent becoming a reason for concern.
The core inflation in August was at 4. per cent against the 4.9 per cent in July. This decrease is a positive sign as it indicates a decline in inflationary pressures in the non-volatile sectors of the Indian economy.
Food inflation was one of the major concerns in July but it has come down from the double digits of 11.5 per cent to 9.94 per cent in August. The vegetable inflation for the last month was at 26.14 per cent.
The pulse inflation was at 13.04 per cent in August in comparison to the 13.27 per cent reported in July.
Rural and Urban Inflation
Rural inflation in August was at 7.02 per cent against 7.63 per cent of July. On the other hand the urban inflation stood at 6.59 per cent in comparison to the 7.20 per cent reported in July.
The housing inflation for August stood at 4.38 per cent vs the 4.47 month-on-month whereas the clothing and footwear inflation was at 5.15 per cent vs 5.64 per cent MoM.
Fuel and light inflation
The fuel and light inflation for the month of August was at 4.31 per cent against 3.67 per cent reported in the previous month.