Data released by the National Statistical Office on Monday showed food inflation eased in August to 9.05% from 9.27% in the preceding month. Among states and union territories, West Bengal (9.44%) faced highest retail inflation while Delhi (3.58%) saw the lowest inflation. Madan Sabnavis, chief economist at Care Ratings said there are few signs of food prices coming down in the coming months. “A good kharif harvest can moderate inflation on cereals to a certain extent, but it does look like that food inflation will remain elevated. “The retail inflation in three consecutive quarters is likely to exceed 6% and monetary policy committee will have to respond to the government on the steps taken to keep inflation in 2%-6% range.

Source: Mint September 14, 2020 12:25 UTC