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Consumer Inflation At 6.69% In August, Remains Above RBI Target
14 Sep 2020, 06:10 PM IST 
The RBI's Monetary Policy Committee adjusts key ratesbased on changes in inflation trends
- Nearly 50 economists had expected consumer prices to have risen 6.85 per cent in August from a year ago, according to a poll conducted by news agency Reuters.
- Food inflation - or the rate of rise in food prices - was at 9.05 per cent last month, as against 9.27 per cent in July.
- The latest data shows consumer inflation has remained above the central bank's medium term range of 4-6 per cent for the fifth month in a row.
- Last month, the Reserve Bank of India had refrained from easing the monetary policy further, after months of aggressive cuts in interest rates, citing inflationary pressures.
- Analysts expect the central bank to keep key interest rates on hold for now.
- "Despite unlocking phases, the supply-side disruption is surging the food and fuel prices.... RBI rate cut hopes still remain low at least at the October policy," said Rahul Gupta, head of research-currency at Emkay Global Financial Services.
- The RBI's Monetary Policy Committee, headed by Governor Shaktikanta Das, adjusts key rates based on changes in inflation trends.
- In recent months, the central bank has shifted its focus to revival of economic growth while keeping inflation under control, in a move aimed at minimising the fallout from the coronavirus pandemic, which has impacted economic and business activity significantly.
- The RBI Governor has warned that consumer inflation is expected to remain elevated in the country during the July-September period, and may subside going forward.
- Separate official data released during market hours on Monday showed wholesale prices in the country rose 0.16 per cent last month, having remained in a deflationary mode for four months in a row.
