August retail inflation eases to 6.83 per cent
Vegetable prices rose 26.1% in August as against a staggering 37.34% surge in July. Conversely, prices of oils and fats fell 15.3% after a drop of 16.8% in the previous month.
NEW DELHI: Consumer inflation grew at a slower pace of 6.83% in August as compared to the previous month’s 15-month high of 7.44%, according to the data revealed by the National Statistical Office (NSO).
The fall was mainly driven by lower prices of edible oil and a slight decrease in vegetable inflation. As per the data, the combined food price index eased to 9.94% year-on-year, down from 11.51% in July.
However, retail inflation remained above the central bank’s target range of 2-6% for the second consecutive month, mainly due to the price increase of tomatoes. Cereal prices remained in double digits, rising 11.6% in August, while milk and milk products inflation stood at 7.7%.
Vegetable prices rose 26.1% in August as against a staggering 37.34% surge in July. Conversely, prices of oils and fats fell 15.3% after a drop of 16.8% in the previous month. To combat inflation, the government has implemented trade regulations for most food items and imposed restrictions on rice and wheat exports.
As per Madhavi Arora, lead economist with Emkay Global, “Food inflation shock will reverse from Oct/Nov’23, leading to easing inflation in coming months. We are tracking September print at 5.86% and see FY24 average inflation ~5.2%.”
Industrial growth at 5-month high in July
India’s industrial production growth surged to a five-month high of 5.7% in July, driven by robust performance in manufacturing, mining, and power sectors, according to official data released on Tuesday. The Index of Industrial Production (IIP) for July 2023 showed improvement from the 2.2% growth recorded in the same month last year. Manufacturing output rose 4.6% in July, as against 3.1% in the previous year, while power generation witnessed 8% growth compared to 2.3% in the corresponding period. Mining output also rebounded strongly, posting a growth of 10.7%. ENS