August retail inflation rises to 3.21 per cent, July IIP at 4.3 percent

Retail inflation rose marginally to 3.21 per cent in August from 3.15 per cent last month on the back of higher food prices.

August CPI food price inflation at 2.99 percent v/s 2.36 percent month on month.

Industrial production jumped to 4.3 per cent in July from 2.0 per cent in June on the back of an uptick in core sector growth. July manufacturing output at 4.2 percent.

July infrastructure output at 2.1 percent v/s -1.8 month on month.

A reuters poll of 40 economists had predicted consumer price inflation to have picked up to 3.3 percent from July’s 3.15 percent.

This is the thirteenth straight month where inflation has remained below the RBI’s medium term target of 4 per cent.

The outlook for CPI inflation excluding food and fuel remains soft. Manufacturing firms participating in the industrial outlook survey expect output prices to ease in Q2. Keeping these factors in mind, the Reserve Bank of India in its third bi-monthly policy has projected the path of CPI inflation at 3.1 per cent for Q2:2019-20 and 3.5-3.7 per cent for H2:2019-20, with risks evenly balanced.

CPI inflation for Q1:2020-21 is projected at 3.6 per cent.

Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined are also being released for August 2019.

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