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August CPI - Favourable Base, Lower Food Prices Drive Inflation Lower: ICICI Direct

August CPI - Favourable Base, Lower Food Prices Drive Inflation Lower: ICICI Direct

<div class="paragraphs"><p>A customer counts Indian rupee banknotes at a stall at a vegetable wholesale market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
A customer counts Indian rupee banknotes at a stall at a vegetable wholesale market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Consumer price index Inflation for August declined further to 5.3% compared to 5.6% in July 2021.

Inflation print has now declined 100 basis points in two months from 6.3% in June 2021 to the latest print of 5.3%.

The decline in headline inflation in the last two months is largely driven by a fall in food inflation.

Consumer food price index has come down sharply in the last two months from 5.1% in June 2021 to 4.0% in July and to 3.1% now in August 2021.

The favourable base effect of vegetables within food is the major reason for the low food inflation.

Click on the attachment to read the full report:

ICICI Direct Inflation August.pdf

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