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India’s retail inflation in August was 3.65%, staying below the Reserve Bank of India’s (RBI) target of 4% for the second month in a row.
Food inflation increased slightly to 5.7% from 5.4% in July.
Rural areas experienced higher food inflation compared to urban areas.
Prices of tomatoes dropped significantly—47.9% year-on-year and 28.8% month-on-month—helping to keep overall inflation in check.
Despite lower tomato prices, vegetable inflation rose to 10.7% and pulses inflation remained high at 13.6%, continuing a trend of steep price increases.
Economists expect inflation to rise in the coming months due to the diminishing impact of last year’s base effects.
On a month-to-month basis, the Consumer Price Index (CPI) remained stable in August, and the Consumer Food Price Index fell slightly by 0.44%
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