Retail inflation inches up to 7% in August on costlier food items

Retail inflation inched up to 7 percent in August from 6.71 percent in July mainly due to higher food prices, government data showed on Monday.

The consumer price index-based inflation is above the Reserve Bank’s comfort level of 6 percent for the eighth month in a row.

According to the data, inflation in food basket was 7.62 percent in August, up from 6.69 percent in July and 3.11 percent in August 2021.

In its August monetary policy announcement, the Reserve Bank of India (RBI) maintained its inflation forecast for 2022-23 at 6.7 percent.

RBI is conscious of the fact that spillovers from geopolitical shocks are adding substantial unpredictability to the inflation trajectory.

The central bank also stated that it is concerned about the paddy seeding shortage.