Retail inflation rises to 10.3 percent in August

September 18th, 2012 - 3:37 pm ICT by IANS  

New Delhi, Sep 18 (IANS) India’s retail inflation rose to double digits at 10.3 percent in August as compared to 9.86 percent in the previous month owing to a sharp rise in the prices of vegetables, pulses and edible oils, government data showed Tuesday.

Vegetables became costlier by 20.79 percent year-on-year, while the prices of pulses increased 16.04 percent. Edible oils and fats also became dearer by 18.41 percent, according to data released by the Central Statistics Office (CSO).

The retail inflation, based on the consumer price index (CPI), rose to 10.19 percent for urban areas during the month under review as compared to 10.10 percent in the previous month.

For rural areas, the inflation grew to 9.90 percent in August as compared to 9.76 percent in the previous month.

Prices of most essential food categories grew during the month under review. Milk products became costlier by 11.43 percent. Prices of egg, fish and meat increased by 11.54 percent.

Prices of food and beverages increased by 12.03 percent, and clothing, bedding and footwear became costlier by 10.71 percent.

The RBI in its mid-quarter review of monetary policy Monday kept interest rates unchanged, saying inflation remains a huge concern.

“As inflationary tendencies have persisted, the primary focus of monetary policy remains the containment of inflation and anchoring of inflation expectations,” said RBI Governor D.Subbarao.

According to official data released last week, the headline inflation, based on wholesale prices, increased to 7.55 percent in August as compared to 6.87 percent in the previous month.

– Indo-Asian News Service

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