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August Inflation Hits 20-Month High: Food Prices Spike
14 Sep
Summary
- Retail inflation climbed to 4.82% in August, a 20-month high.
- Food inflation accelerated to 5.95% due to soaring onion and ginger prices.
- Services inflation remained elevated, impacting overall consumer prices.
Retail inflation in August reached 4.82%, the highest recorded in the new CPI series and estimated to be a 20-month high. This marks the third consecutive month that inflation has exceeded the Reserve Bank of India's 4% target. The acceleration from July's 4.45% is attributed to firmer food prices and persistent sticky services inflation.
Food inflation, specifically, rose to 5.95% in August, up from 5.52% in July. This jump was heavily influenced by substantial price increases for onions (48.27%), garlic (43.60%), and ginger (73.82%). Conversely, prices for tomatoes and potatoes continued their downward trend.
Among other categories, miscellaneous goods and services, which include gold and silver, saw inflation at 15.17%. Restaurants and accommodation services also experienced higher inflation at 8.38%, while transport inflation edged up to 4.60%. Notably, retail inflation in rural areas (5.23%) outpaced urban areas (4.31%).
