India's retail inflation slows to 6.83 per cent in August, but stays outside RBI’s tolerance band

Retail inflation, measured by consumer price index (CPI) slowed to 6.83 per cent on an annual basis as against 7.44 per cent in July showed data released by the National Statistical Office on Tuesday.

However, CPI based inflation still remains above the Reserve Bank of India's upper tolerance limit of 6 per cent for a second month.

Food price inflation stood at 9.94 per cent, down from 11.51 per cent in July 2023.

Rural inflation was on the higher side at 7.02 per cent, compared to urban inflation at 6.59 per cent in August.

The moderation in retail inflation can be partly attributed to a decline in vegetable prices.

However, it's crucial to note that certain essential items such as cereals, pulses, milk, and fruits experienced slight price increases during this period.

The RBI has projected the CPI inflation at 5.4% for 2023-24.