CPI inflation worsens to 3.65% in August from 3.03% in previous month

Consumer Price Index (CPI) inflation rate in India worsened to 3.65 per cent in August from 3.03 per cent the previous month, though that was the second-lowest reading since June 2023, according to official data released on Thursday. 

While the urban inflation slipped from 3.03 per cent to 3.14 per cent, the rural inflation rate also slid from 4.10 per cent to 4.16 per cent MoM. 

Combined CPI inflation in August was 3.65 per cent compared with 3.60 per cent MoM. 

The inflation of 3.65 per cent is the second-lowest in last five years. 

For the month of August, year-on-year inflation based on All India Consumer Food Price Index (CFPI) number is 5.66 per cent (Provisional), which was 5.42 per cent in July. Corresponding inflation rate for rural and urban is 6.02 per cent and 4.99 per cent, respectively, a decline from 5.89 per cent and 4.63 per cent.

In August, a decline in inflation was observed in the subgroups of ‘spices’, ‘meat and fish’ and ‘pulses and products’, etc, says a press release from the ministry of statistics and programme implementation.

The price data are collected from selected 1,114 urban markets and 1181 villages covering all states/UTs through personal visits by field staff of field operations, division of NSO, MoSPI on a weekly roster.

During the month of August 2024, NSO collected prices from 100.0 per cent villages and 98.6 per cent urban markets, while the market-wise prices reported therein were 88.3 per cent for rural and 92.4 per cent for urban, says the ministry release.