Retail inflation cools to 10-month low of 3.69 per cent in August 

The lower retail inflation print comes amid a spike in petrol and diesel prices that have been on the rise since August 16.

Published: 12th September 2018 07:44 PM  |   Last Updated: 12th September 2018 07:44 PM   |  A+A-

RBI logo used for representation (File | Reuters)


NEW DELHI: Retail inflation cooled to a 10-month low of 3.69 per cent in August -- below RBI's target of 4 per cent -- on the back of easing prices of fruits, vegetables and other food items, official data showed Wednesday.

The lower retail inflation print comes amid a spike in petrol and diesel prices that have been on the rise since August 16.

Also, the rupee has weakened in the recent weeks, making imports costlier.

The Consumer Price Index (CPI) based inflation was at 4.17 per cent in July and 3.28 per cent in August 2017.

The previous low for CPI inflation was in October 2017, when it stood at 3.58 per cent.

Inflation remained above RBI's targeted rate of 4 per cent since then.

The Central Statistics Office (CSO) data showed that inflation in the food basket fell significantly to 0.29 per cent in August 2018 as against 1.37 per cent in the previous month.

Vegetable prices declined by 7 per cent in the month under review.

The rate of price rise in fruits stood at 3.57 per cent, compared to around 7 per cent in July.

However, there was a moderate increase in inflation in the fuel and light segment.

It rose to 8.47 per cent in August compared to about 8 per cent in July.

Diesel accounts for 40 per cent of India's fuel basket and is consumed mainly by the transport sector.

The Reserve Bank of India (RBI) will be factoring in inflation data while deciding the interest rate at its next bi-monthly monetary policy meeting on October 5.

The central bank has been tasked to maintain the retail inflation at the level of 4 per cent (with a margin of 2 per cent on either side).

Price data are collected from selected towns by the Field Operations Division of the National Sample Survey Office (NSSO) and from selected villages by the Department of Posts.

Price data are received through web portals, maintained by the National Informatics Centre.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp