Retail Inflation Sees Minor Rise in August 2024 Despite Vegetable and Pulse Price Surge

Retail inflation in August crept up to 3.65%, driven by double-digit price rises in vegetables and pulses, although it remained below the RBI's target of 4%. Urban inflation was noted at 3.14%, while rural areas experienced 4.16%. The highest inflation was in Bihar (6.62%), and the lowest in Telangana (2.02%).

Retail inflation in August rose slightly to 3.65%, as double-digit price increases in vegetables and pulses drove the numbers upward, according to official data released on Thursday.

Despite the surge in specific categories, the retail inflation rate as measured by the Consumer Price Index (CPI) stayed below the Reserve Bank of India's (RBI) median target of 4% for the second consecutive month, following a five-year low of 3.6% in July. The headline inflation was 6.83% in August 2023.

''Year-on-year inflation rate (3.65%) based on All India Consumer Price Index (CPI) for August 2024 is the second lowest in the last five years,'' stated the National Statistical Office (NSO). Inflation in vegetables reached 10.71%, while the 'pulses and products' category saw a 13.6% spike.

(With inputs from agencies.)