Retail Inflation Likely Remained Steady At 5.60% In August: Report

Retail inflation in August 2021: The Sept. 6-8 poll of 41 economists put consumer price inflation at 5.60 per cent in August from a year earlier, little changed from a three-month low of 5.59 per cent in July.

The country's retail inflation held steady in August, staying within the central bank's comfort zone for a second month as a moderation in food price rises was offset by continued supply-chain disruptions, a Reuters poll predicted. The Sept. 6-8 poll of 41 economists put consumer price inflation at 5.60 per cent in August from a year earlier, little changed from a three-month low of 5.59 per cent in July. If confirmed, inflation would be within the Reserve Bank of India's (RBI) two - six per cent comfort range for a second month. But it has been above the medium-term target of four per cent for nearly two years. "August inflation is expected to stabilise around July numbers and drift lower over the remaining months of 2021 on base effects and ebbing food prices," said Radhika Rao, economist at DBS Bank.