Retail Inflation Rises Amidst Soaring Food Prices

Retail inflation saw a slight increase in August, reported at 2.07%, up from 1.61% in July, primarily driven by higher costs for vegetables, meat, and fish. The National Statistics Office indicates annual inflation for August 2025 over the previous year stands at -0.69%. The Reserve Bank aims to keep inflation near 4%.

Retail inflation experienced a minor uptick in August, reaching 2.07%, a rise from the 1.61% reported in July. This was largely a result of escalating prices for essential commodities such as vegetables, meat, and fish, according to government statistics released on Friday.

The consumer price index (CPI) stood at 3.65% during August 2024. However, the annual inflation rate for August 2025 compared to August 2024 was noted at a negative 0.69%, as per data from the National Statistics Office (NSO).

Increases in both headline and food inflation for August 2025 are primarily due to the rising prices of staple goods such as vegetables, meat, fish, oils, and personal care items. The Reserve Bank, under government mandate, continues to strive for an inflation target of 4%, allowing a 2% margin either way.