Consumer Price Index (CPI) inflation has been recorded at 6.83 per cent for the month of August as the food prices continued to push the prices. The inflation rate is still above the tolerance band of 2 to 6 per cent. CPI inflation was 7.44 per cent last month.
Inflation has become a significant challenge due to rising consumer food price index (CFPI). In the last monetary policy committee meet held in August, RBI governor Shaktikanta Das had said that the central bank would continue to keep an eye on the rising inflation. The central bank's MPC had kept the repo rate unchanged at 6.5 per cent.
CFPI eased to 9.94 per cent from 11.51 per cent recorded in July. Rural areas recorded 9.67 per cent CFPI inflation while 10.42 per cent was recorded in urban areas.
In an interview to Outlook Business, MPC member Ashima Goyal had said that the vegetable inflation is expected to fall from September. Erratic monsoon in the country has been one of the reasons behind rising food inflation.
After easing to 4.2 per cent in May 2023, the headline number has increased as the monsoon played a spoilsport. After increasing to a high of 7.44 per cent in July, the number has eased in the month of July. The government has introduced several measures to control the rising inflation, which include export ban and selling at discounted prices.
All eyes will now be on the MPC meet which is scheduled to be held next month as the inflation eases from the high of July.