India's retail inflation in August down to 6.69 pct

Source: Xinhua| 2020-09-14 21:55:05|Editor: huaxia

MUMBAI, Sept. 14 (Xinhua) -- India's retail inflation slowed down to 6.69 percent in August, according to data released by the National Statistical Office on Friday.

The retail inflation measured as the consumer price index (CPI) remains above the comfort zone of the country's Central Bank. "India's inflation has decelerated in August, heading in a favourable direction, despite still being above the official target," said Radhika Rao, Economist, at Singapore-based DBS Bank Ltd.

Inflation in Asia's third largest economy has spiraled amid the pandemic-led lockdown with continuous supply side distortions keeping the inflation figure above the country's Central Bank medium term target of six percent for the fifth month in a row.

"With the CPI inflation for August 2020 sticky at a sharp 6.7 percent, and unlikely to recede meaningfully in September 2020, a repo cut in the upcoming policy review seems to be virtually ruled out. Moreover, the CPI inflation is expected to print sub-4 percent only in December 2020-February 2021, based on which a continuation of the accommodative stance appears doubtful," said Aditi Nayar, Principal Economist at ICRA, a domestic credit rating agency. Enditem