India’s retail inflation during August this year continued to grow at 3.36 percent, on the back of increase in foods prices and higher services costs indicating inflationary impact of Goods and Service Tax (GST).
Consumer Price Index (CPI), which is the factor that is used to measure Retail Inflation declined for three consecutive months, which increased by 2.36 percent in July. It grew at 5.05 percent in August a year ago.
The fall in food inflation was brought about by a disinflation in the prices of mainly Pulses and Vegetables including Potatoes and Onion. The current data released by the government, however, indicates a reversal in trend with food prices firming up.
Fuel inflation was seen to had a growth of about 4.94 percent during August this year when compared to 4.84 percent in July this year. Petrol and Diesel prices in India during August was seen to increase, which has started to push up freight rates as well.