India’s retail inflation was recorded at 3.65% in August 2024, as per the All India Consumer Price Index (CPI) data released on Thursday, 12 September 2024.
The combined inflation rate (rural and urban) dropped to 3.65% in August 2024 from 6.83% in August 2023, although it increased by 110 basis points from July 2024’s 3.54%.
This marks only the second time in nearly five years that inflation fell below the Reserve Bank of India’s 4% target, the first being in July 2024. The RBI’s target is 4%, with a tolerance range of 2% to 6%.
Urban inflation declined to 3.14% in August 2024 from 6.59% in August 2023, while rural inflation decreased to 4.16%, down from 7.02% in the same period.
The Consumer Food Price Index (CFPI), reflecting food inflation, stood at 5.66% in August 2024, down from 9.94% in August 2023.
Urban food inflation dropped to 4.99% from 10.42%, and rural food inflation to 6.02% from 9.67%.
Tomatoes saw the steepest deflation, with year-on-year inflation falling by 47.91% and a month-on-month index change of -28.8%.
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