Consumer inflation slips to 6.69 pc in Aug, remains above RBI goal
New Delhi | Jagran Business Desk: The consumer inflation slipped to 6.69 percent in August as against 6.73 percent in the previous month. The government has revised downwards the retail inflation for July to 6.73 percent from the earlier estimate of 6.93 percent. Food inflation during the month stood at 9.62 percent. The retail inflation is determined by the Consumer Price Index. The Reserve Bank of India (RBI) tracks consumer inflation primarily for making changes to its monetary policy.
The retail inflation, mainly taken into account by the RBI to arrive at its policy decisions, has been above the regulator''s comfort level. The six-member Monetary Policy Committee (MPC) headed by the RBI Governor has been given the mandate to maintain annual retail inflation at 4 per cent until March 31, 2021, with an upper tolerance of 6 per cent and a lower tolerance of 2 per cent.
RBI Governor Shaktikanta Das has warned that consumer inflation is expected to remain elevated in the country during the July-September period, and may subside thereafter.
The GDP contraction in the world’s fifth-largest economy compared with 3.1 per cent growth in the preceding January-March quarter and 5.2 per cent expansion in the same period a year back.
During the April-June quarter, agriculture was the lone bright spot, growing by 3.4 per cent. Financial services -- the biggest component of India’s dominant services sector -- shrank 5.3 per cent, while trade, hotels, transport and communication declined 47 per cent.
Posted By: Rakesh Kumar Jha