The ministry also said that core inflation, which is calculated excluding the transient components of the CPI – ‘food and beverages’ and ‘fuel and light’ – remained below the tolerable limit of 6% for the fourth month running at 5.9 per cent.
“Headline inflation based on retail CPI registered a marginal increase from 6.71% in July 22 to 7.0% in August 22. This increase is on account of both adverse base effect and increase in food and fuel prices – transient components of CPI inflation, Ministry said in a series of tweets.
this is the second time since reserve Bank of India Implemented the inflation targeting approach that retail inflation exceeded the upper tolerance limit of 6% for eight consecutive months – the first was from April 2020 to November 2020.
On the other hand, the finance ministry hoped that the government’s export ban on flour, rice, maida and other cereals would help keep prices under check.
“The government has put restrictions on export of food products like wheat flour/atta, rice, maida etc. to stabilize domestic supply and prevent price rise. The impact of these measures will be felt more in the coming weeks and months. is expected to be.” The ministry said in another tweet.
The ministry said similar measures taken in the past have resulted in reduction in prices of commodities like edible oil and pulses.
“In order to bring down the prices of edible oils and pulses, tariffs on imported goods have been rationalized from time to time and stock limits have been placed on edible oils to avoid hoarding. “Oils and Fats” and “Pulses and Pulses” Inflation in products” has come down to 5.62% and 2.52% respectively,” another tweet said.
Referring to the fall in iron ore and steel prices, the ministry said this has helped in keeping inflation in consumer goods under check along with measures taken by the government to rationalize the tariff structure of inputs to augment domestic supply. .
“Despite erratic monsoon and negative seasonality in vegetable prices, food inflation in July is still lower than the current year’s April peak. With global inflationary pressures, inflation expectations remain tight India With stable core inflation,” another tweet said.
According to the IIM-Ahmedabad One-Year Ahead Business Inflation Expectations Survey, July declined by 34 basis points to 4.83 per cent from 5.17 per cent in June. According to the survey, after 17 months, the inflation rate has come down to below 5 percent.