The government has revised downwards the retail inflation for July to 6.73 per cent from the earlier estimate of 6.93 per cent. Food inflation during the month stood at 9.62 per cent.
“The annual rate of inflation, based on monthly WPI, stood at (0.16 per cent) (Provisional) for the month of August, 2020 (over August, 2019) as compared to 1.17 per cent during the corresponding month of the previous year,” the Ministry said in its review of ‘Index Numbers of Wholesale Price in India’ for August.
In the notes to WPI August, the ministry said: “The WPI for August 2 020, have been compiled at a weighted response rate of 76 per cent, while the final figure for June, 2020 is based on the weighted response rate of 88 per cent.”
Food inflation in August fell marginally to 9.05 per cent, according to the Consumer Price Index (CPI) data. 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 government has mandated the central bank to restrict the inflation at 4 per cent (+/- 2 per cent).