Rising Tide: Inflation's Upward Push in August

Retail inflation in August surged to 2.07% from 1.61% in July, primarily influenced by increased prices of vegetables, meat, fish, and eggs. This rise marks a reversal in the consumer price index's nine-month decline. Urban inflation recorded at 2.47%, while rural inflation increased to 1.69%.

Retail inflation saw a rise to 2.07% in August, climbing from July's 1.61%, driven by increased costs of kitchen staples such as vegetables and proteins, as per the recent government data.

After a nine-month streak of declining figures, this marks a notable upward shift in the consumer price index trends, which had been decreasing since November 2024. The National Statistics Office indicated food inflation also saw similar upticks, impacting overall figures.

The Reserve Bank's target inflation remains at 4% plus or minus 2%, and these figures are critical for upcoming monetary policy decisions. Notably, rural inflation rose to 1.69%, while urban rates hit 2.47%, with drastic variances among states like Kerala and Assam.

(With inputs from agencies.)