The Consumer Price Index (CPI) has been estimated to be much lower at around 3.47 percent than the market, while the RBI has estimated it to be around four percent.
As expected, the CPI range is seen between 3.3 percent and 3.6 percent respectively as compared to the numbers in July, which was at 3.78 percent. Core CPI too is expected to come in at the same level as last month at around 4.3 percent and the range is between 4.2 and 4.5 percent respectively.
The softening as indicated by the experts was a reason of the base impact in the same month last year that is August 2014, which had the CPI data at around 7 percent.
However, from the month of August 2014, the base impact had started to fluctuate. Food and beverages is 46 percent of the CPI, which is expected to balance further.
Food inflation is also estimated around 2.3 percent, which compares to a softening that was witnessed last month at around 2.9 percent.
Overall, there were two petrol and diesel price cuts that took place in the month of August. The Wholesale Price Index (WPI) data as of July has contracted for the ninth consecutive month. It is now expected around -4.43 percent for the month of August in respect to -4.05 percent in July.
