According to official figures issued on September 12, India's consumer price index (CPI) inflation in August 2024 was 3.65 percent, down from 6.83 percent the previous year. This is the second-lowest CPI statistic in the past five years.

"The year-on-year inflation rate (3.65 percent) based on the All India Consumer Price Index (CPI) for August 2024 is the second lowest in the past five years. The corresponding inflation rates for rural and urban areas are 4.16 percent and 3.14 percent, respectively, according to a statement from the Ministry of Statistics and Programme Implementation.

Food price inflation in August was somewhat higher, at 5.66 percent, compared to 5.42 percent in July. In July, India's retail inflation rate was 3.6%. According to the report, the CPI food price index decreased by 0.4 percent month on month (MoM), while the CPI vegetable index decreased by 2.5 percent. According to the most recent data issued by the National Statistical Office (NSO), food basket inflation fell to 5.89 percent in August 2024, down from 9.94 percent the previous year.

Food inflation in August 2024 is the second-lowest since June 2023. The year-on-year inflation rate for August 2024 is 5.66 percent (provisional), according to the All-India Consumer Food Price Index (CFPI). According to official figures, the corresponding inflation rates for rural and urban areas are 6.02 percent and 4.99 percent.

At the item level, 'tomato' has the lowest year-on-year inflation (-47.91 percent) and the lowest month-on-month change in index (-28.8 percent), the research noted. Inflation has declined in the subgroups of'spices','meat and fish', and 'pulses and goods', according to the government.

CPI inflation in July fell to a 59-month low of 3.54 percent, down from 7.44 percent in July 2023 and 5.08 percent in June 2024. Consumer food price inflation also fell to 5.42 percent in July, compared to 11.51 percent a year earlier and 9.36 percent in June 2024. This softening was attributed, in part, to the impact of a larger base in July 2023. Retail inflation in veggies was 6.83 percent in July.

The RBI projects 4.5% inflation in FY25, including 4.4% in Q2, 4.7% in Q3, 4.3% in Q4, and 4.4% in Q1FY26.