<div>In a relief to the common man battling rise in prices, India’s retail inflation came down below 4 per cent to 3.66 per cent in August, backed by lower prices of fruits and vegetables, but pulses remained costlier.<br /><br />Food inflation in August was slightly higher than in July, and came in at 2.20 per cent, while vegetable price inflation stood at -6.36 per cent against -7.93 per cent, last month. Food and beverages account for 46 per cent of the CPI basket.<br /><br />Wholesale price inflation too declined for the 10th consecutive month and was at -4.95 per cent in August, against 4.05 per cent in July. The decline, however, was attributed to a high base effect in the month of August, last year.<br /><br />Buoyed by the encouraging inflation data, Finance Minister Arun Jaitley said that the price situation was moderating and seemed to be under control. <br /><br />On the retail side, prices of pulses continued to rise at a higher rate with inflation at 25.76 per cent in this category. Pulses were dearer in the wholesale markets too by above 36 per cent. Onions too remained costlier.<br /><br />Besides pulses and onion, eggs, meat and fish too became dearer in the wholesale market. But given an all-round slide in prices, industry bodies heightened the call for an interest rate cut by the Reserve Bank of India. The Finance Ministry too said that the RBI will take a considered call after weighing inflation and other factors.<br /><br />“We expect the RBI to reduce interest rates by 0.50 per cent in the forthcoming policy with statements supporting further easing in the near future,” CII Director-General Chandrajit Banerjee said.<br /><br />“Under the present circumstances, it would be most appropriate for the RBI to give weight to growth considerations and announce a deeper cut in the policy rate,” Ficci president Jyotsna Suri said. The Reserve Bank’s next bi-monthly monetary policy review is on September 29. While deciding on the key interest rate, it mostly tracks the Consumer Price Index-based inflation.<br /></div>
<div>In a relief to the common man battling rise in prices, India’s retail inflation came down below 4 per cent to 3.66 per cent in August, backed by lower prices of fruits and vegetables, but pulses remained costlier.<br /><br />Food inflation in August was slightly higher than in July, and came in at 2.20 per cent, while vegetable price inflation stood at -6.36 per cent against -7.93 per cent, last month. Food and beverages account for 46 per cent of the CPI basket.<br /><br />Wholesale price inflation too declined for the 10th consecutive month and was at -4.95 per cent in August, against 4.05 per cent in July. The decline, however, was attributed to a high base effect in the month of August, last year.<br /><br />Buoyed by the encouraging inflation data, Finance Minister Arun Jaitley said that the price situation was moderating and seemed to be under control. <br /><br />On the retail side, prices of pulses continued to rise at a higher rate with inflation at 25.76 per cent in this category. Pulses were dearer in the wholesale markets too by above 36 per cent. Onions too remained costlier.<br /><br />Besides pulses and onion, eggs, meat and fish too became dearer in the wholesale market. But given an all-round slide in prices, industry bodies heightened the call for an interest rate cut by the Reserve Bank of India. The Finance Ministry too said that the RBI will take a considered call after weighing inflation and other factors.<br /><br />“We expect the RBI to reduce interest rates by 0.50 per cent in the forthcoming policy with statements supporting further easing in the near future,” CII Director-General Chandrajit Banerjee said.<br /><br />“Under the present circumstances, it would be most appropriate for the RBI to give weight to growth considerations and announce a deeper cut in the policy rate,” Ficci president Jyotsna Suri said. The Reserve Bank’s next bi-monthly monetary policy review is on September 29. While deciding on the key interest rate, it mostly tracks the Consumer Price Index-based inflation.<br /></div>
