Inflation in potato and onion remained high at 77.96 per cent and 65.75 per cent in August.
There has been a decline in the wholesale inflation rate in the country. According to government data released on Tuesday, wholesale inflation (inflation) has come down to 1.31 percent for the second consecutive month in August 2024. According to PTI news, the reason for the reduction in inflation rate in the data is cheap vegetables, food items and fuel. Wholesale Price Index (WPI) based inflation was 2.04 percent in July. According to PTI news, it was (-) 0.46 percent in August last year.
Due to these reasons there was a change in the trend of inflation
According to the news, the Ministry of Industry said in a statement that the positive rate of inflation in August 2024 is mainly due to the increase in prices of food items, processed food products, other manufacturing, textile manufacturing and manufacturing of machinery and equipment etc. According to the data, food inflation was 3.11 percent in August, while it was 3.45 percent in July. This was due to the fall in the prices of vegetables, which declined by 10.01 percent in August compared to 8.93 percent in July.
Potato and onion prices rise
Inflation in potato and onion remained high at 77.96 per cent and 65.75 per cent in August. The fuel and power category witnessed deflation of 0.67 per cent in August as against inflation of 1.72 per cent in July. Data released last week showed that retail inflation was 3.65 per cent in August due to high prices of vegetables. It was higher than 3.60 per cent in July. The Reserve Bank of India (RBI), which mainly takes into account retail inflation while formulating monetary policy, kept the benchmark interest rate or repo rate unchanged at 6.5 per cent for the ninth consecutive time in August.
The reduction in interest rates will depend on the long-term rate of inflation
Reserve Bank of India (RBI) Governor Shaktikanta Das said on Monday that the reduction in the policy interest rate will depend on the long-term rate of inflation and not on monthly data. The Monetary Policy Committee (MPC) meeting chaired by Das is to be held between 7 and 9 October. A decision on the reduction in the policy rate will be taken in the meeting. In the monetary policy review in August, RBI had kept the repo rate at 6.5 percent for the ninth consecutive time in view of high food inflation.
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