Inflation dips marginally to 5.3% in Aug.

Current GK ( Master) Inflation Trends

India’s retail inflation cooled to 5.3% in August from 5.6% in July, thanks to food price inflation falling to 3.11% from nearly 4% in July, and the effect of a high base last August.
This marks the second month of marginal moderation in the Consumer Price Index (CPI), keeping retail inflation below the central bank’s upper tolerance threshold of 6% after hitting 6.3% in May and June this year.
The Reserve Bank of India is expected to continue with its accommodative monetary policy stance, with the headline inflation number edging lower. However, economists warned that inflationary risks persist.
These could dampen the fervour for festive spending as inflation in health (7.8%), transport and communication (10.2%), fuel and light (almost 13%), remains high.
They attributed the downward movement in inflation largely to the base effect — CPI inflation was at 6.7% in August 2020, with the Consumer Food Price Index rising 9.05%.
The pace of price rise in protein sources and oils remained a concern.