Page 16 - Policy Economic Report - September 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Inflation in India

• India's retail inflation in August 2024 falls below the RBI's 4% target for the second time in about five
years.

• India's retail inflation was 3.65% in August 2024, according to the All-India Consumer Price Index (CPI)
data released on September 12, 2024.

• The combined inflation (rural and urban) fell to 3.65% in August 2024, compared to 6.83% in August
2023. However, it has increased by 110 basis points when compared to the previous month's 3.54%.

• This was the second time in nearly five years that overall retail inflation fell below the Reserve Bank
of India's 4% inflation target. The last time was July 2024.

• Urban inflation fell to 3.14% in August 2024, compared to 6.59% in August 2023. Rural inflation fell to
4.16% in August 2024, compared to 7.02% in August 2023.

• The combined Consumer Food Price Index (CFPI), which shows food inflation was 5.65% in August
2024, compared to 9.94% in August 2023. While the urban food inflation fell to 4.99% in August 2024,
compared to 10.42% in August 2023, rural food inflation fell to 6.02% in August 2024, compared to
9.67% in August 2023.

Figure 8: Inflation trend based on all India CPI

Source- MoSPI Page | 15

September 2024