Consumer Price Index (CPI) based or retail inflation stood at 7.96 percent in July. In August 2013, retail inflation was at 9.52 percent. However, food inflation during the month under review rose to 9.42 percent over 9.36 percent in July, an official release said.
    
The rate of price rise in vegetables stood at 15.15 percent in August as against 16.88 percent in the previous month. Rate of price increase in cereals and its products turned lower at 7.39 percent and that for fuel and light it came down at 4.15 percent.
    
However, prices of fruits during the month went up with 24.27 percent rate of inflation.
    
Inflation in milk and milk products increased to 11.70 percent during the month under review. Also, pulses and its products were costlier at 6.88 percent.
    
Amongst others, food and beverages witnessed no change in price rise at 9.16 percent, while non-alcoholic beverages prices went down at 6.24 percent in August.
    
Eggs, fish and meat were costlier at 7.71 percent during the month. Inflation in rural and urban areas in August was 8.35 percent and 7.04 percent, respectively. In July, it was 8.37 percent and 7.42 percent.
    
The Reserve Bank will unveil its fourth bi-monthly monetary policy statement on September 30, 2014.
    
In its last policy statement in August, RBI had kept key interest rates unchanged--third time in row -- in view of the inflationary expectations and uncertain monsoon conditions.

Latest News  from Business News Desk