India’s retail inflation for August 2024 was recorded at 3.65%, according to the All India Consumer Price Index (CPI) data released on September 12, 2024. This represents a notable decrease from 6.83% in August 2023 and a slight increase from 3.54% in the previous month. This marks the second instance in nearly five years that overall retail inflation has fallen below the Reserve Bank of India’s (RBI) target of 4%.
Urban and Rural Inflation Rates:
- Urban inflation decreased to 3.14% in August 2024, down from 6.59% in August 2023.
- Rural inflation dropped to 4.16%, compared to 7.02% in August 2023.
Consumer Food Price Index (CFPI):
- Overall food inflation was 5.66%, down from 9.94% a year ago.
- Urban food inflation was 4.99%, significantly lower than 10.42% in August 2023.
- Rural food inflation stood at 6.02%, down from 9.67%.
Tomatoes saw the most significant year-on-year deflation at -47.91% and a month-on-month decline of -28.8%. Conversely, vegetable prices surged by 10.71% overall, with urban and rural areas experiencing a rise of 13.22%.
Regional Inflation Highlights:
- Bihar experienced the highest combined inflation at 6.62%, followed by Odisha at 5.63% and Assam at 5.03%.
- Telangana had the lowest combined inflation at 2.02%, with Uttarakhand at 2.37% and Delhi at 2.52%.
Stock Market Performance:
- The BSE Sensex surged to 82,962.71, a gain of 1.77% or 1439.55 points.
- The NSE Nifty closed at 25,388.90, reflecting a 1.89% increase or 470.45 points.
