Inflation on the Rise: August Sees Uptick in Prices

Retail inflation in August increased to 2.07% from 1.61% the previous month, driven by the rise in prices of vegetables, meat, and fish. The annual food inflation over the year was at (-)0.69%. The Reserve Bank's inflation target remains at 4%, with a 2% margin.

In August, retail inflation witnessed a slight uptick, rising to 2.07% from July's 1.61%, as revealed by government data. The increase is primarily tied to higher prices for vegetables, meat, and fish.

Comparatively, the inflation rate, based on the consumer price index for August 2024, stood at 3.65%. The National Statistics Office disclosed that the annual food inflation from August 2024 to August 2025 recorded a decline of 0.69%.

Factors such as vegetables, meat, fish, oils, and personal care contributed to the rise in headline inflation for August 2025. The Reserve Bank continues to target a 4% inflation rate with a permissible margin fluctuation of 2%.

(With inputs from agencies.)