Retail inflation eases to 6.69% in August; rate cut hopes still remain grim

Retail inflation eases to 6.69% in August; rate cut hopes still remain grim

Once again retail inflation remained above Reserve Bank of India's medium term target of 4-6 per cent, which means a rate cut is not likely to happen in the next monetary policy meet

Retail inflation, measured via Consumer Price Index, slid down slightly to 6.69 per cent in August, as compared to 6.73 per cent in July, data released by National Statistical Office showed. However, it once again remained above the Reserve Bank of India's medium term target of 4-6 per cent. Inflation in foo basket also eased to 9.05 per cent last month, against 9.27 per cent in July.

Meat and fish saw the highest rate of inflation during August at 16.50 per cent, followed by 14.45 per cent in personal care and effects, 14.44 per cent in pulses and products and 12.45 per cent in oils and fat. Vegetables reported 11.41 per cent rate of inflation. Health segment saw 4.71 per cent inflatio.

"It may be seen that as various pandemic related restrictions were gradually lifted and non-essential activities started resuming operations, availability of price data has also improved," the National Statistical Office said.

Notably, government had