Retail inflation in August has jumped slightly to 2.07 per cent from 1.61 per cent in the preceding month, mainly due to an increase in food prices, including vegetables, meat and fish, according to government data released on Friday.
The inflation based on the consumer price index (CPI) was 3.65 per cent in August 2024.
The annual inflation during August 2025 over August 2024 was at (-) 0.69 per cent, according to the data released by the National Statistics Office (NSO).
"An increase in headline inflation and food inflation during the month of August, 2025 is mainly attributed to increase in inflation of vegetables, meat and fish, oil and fats, personal care and affects, egg," NSO said.
Year-on-year CPI inflation for August 2025 stood with RBI’s tolerance limit at 2.07 per cent, despite international policy uncertainties, said Hemant Jain, President, PHDCCI.
"Looking ahead, we anticipate a further decline in CPI inflation, aided by the GST 2.0 reforms package. The proposed simplified two-tier structure will reduce production costs, translate into lower prices, and, in turn, stimulate consumption," he added.
The government has mandated the Reserve Bank to ensure inflation remains at 4 per cent with a margin of 2 per cent on either side.
With PTI inputs
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