August retail inflation cools to 10-month low of 3.69%

NEW DELHI: Inflation based on consumer price index (CPI) for the month of August came in at a 10-month low of 3.69 per cent, government data showed on Wednesday.
In July, retail inflation stood at 4.17 per cent. A Reuters poll of economists had pegged August inflation at 3.68 per cent.

Wednesday's data shows that for the first time in ten months, retail inflation has met Reserve Bank of India's (RBI) mid-term target of 4 per cent.The target was last met in October 2017, when CPI inflation had come in at 3.58 per cent.
In another set of data, the July Index of Industrial Production (IIP), also referred to as factory output came at 6.6 per cent, slowing from 7 per cent in June.

The cooling in inflation came on back of fall in food prices, as the consumer food price index (CFPI) eased to 0.29 per cent in August, from 1.30 per cent, the previous month.
The RBI which has effected back-to-back rate hikes in its last two policy meetings, is now expected to have some elbow room and remain status quo on rates when the central bank's monetary policy committee (MPC) next meets on next month on October 5.
The economists polled by Reuters however opined that the ease in inflation could be temporary as a weakening rupee and rising crude oil prices would boost consumer prices.
While oil prices have risen nearly 15 per cent this year, the rupee touched an all-time low of 72.01 against US dollar on Wednesday's mid-day trade, before strengthening to 71.86 in later in the day.
Economic Affairs Secretary Subhash Chandra Garg on Wednesday said the government and the RBI will do everything to ensure that the rupee does not depreciate to "unreasonable levels".