Retail inflation fell partially in August 2021 due to reduction in food pricesRetail inflation reduced marginally to 5.30 percent in August 2021 compared to 5.59 per cent in July 2021.

The reduction in retail inflation was primarily due to sharp reduction in food inflation which was up to 3.11 per cent in August 2021 from 3.96 percent in July 2021.

The constant fall in Consumer Rate Index (CPI) inflation below the 6 percent mark for the second consecutive month has actually remained in sharp contrast to Might 2021, when it had risen steeply to 6.30 per cent due to supply chain interruption owing to the 2nd wave of the Coronavirus pandemic.It had fell slightly to 6.26 per cent in June 2021 and since then there has been substantial fall in retail inflation.Retail inflation alleviated in August 2021 as costs of a number of food revealed reduction in rates like meat and fish, eggs and fruits, pulses and other products.There was a remarkable decrease in rural retail inflation too, as it was 5.28 per cent in August 2021 compared to 5.49 percent in July 2021.

In reality even city retail inflation fell by rather a lot, as it was 5.32 per cent in August compared to 5.82 percent in July 2021.

Rural food inflation fell considerably to 3.08 percent in August from 3.55 per cent in July.

Urban food inflation saw a rather steep fall to settle at 3.28 per cent in August from 4.56 per cent in July 2021.