? Cool Title, but what’s the news?
Retail inflation in the country fell below the Reserve Bank of India’s (RBI’s) medium-term target of 4% last month.
? Okay, but what does it mean?
The inflation as measured by the consumer price index (CPI) eased to a 10-month low of 3.69% in August 2018, on the back of a decline in the prices of food products such as vegetables, pulses and sugar even as fuel prices increased.
Within the index, food and beverage category inflation fell to 0.85% as compared with 1.73% in July 2018. This was driven by a sharp decline in prices of fruits, vegetables, eggs, pulses and sugar and confectionery products.
? Why should I care?
However, fuel and light inflation stood at 8.47% in August, up from 7.96% in July.
An inflation rate of 3.5% (+/- 1%) is considered healthy for the economy. And in a phase where the Indian rupee is depreciating heavily, this healthy inflation rate is an effect that is keeping your pockets slightly deeper.
Source: The Hindu