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Easing prices of vegetables, cereals and petroleum products brought down retail inflation marginally to 7.8% in August.
Consumer Price Index (CPI) based or retail inflation stood at 7.96% in July. In August 2013, retail inflation was at 9.52%.
However, food inflation during the month under review rose to 9.42% over 9.36% in July, an official release said today.
The rate of price rise in vegetables stood at 15.15% in August as against 16.88% in the previous month.
Rate of price increase in cereals and its products turned lower at 7.39% and that for fuel and light it came down at 4.15%.
However, prices of fruits during the month went up with 24.27% rate of inflation.
Inflation in milk and milk products increased to 11.70% during the month under review. Also, pulses and its products were costlier at 6.88%.
Amongst others, food and beverages witnessed no change in price rise at 9.16%, while non-alcoholic beverages prices went down at 6.24% in August.
Eggs, fish and meat were costlier at 7.71% during the month.
Inflation in rural and urban areas in August was 8.35% and 7.04%, respectively. In July, it was 8.37% and 7.42%.
The Reserve Bank will unveil its fourth bi-monthly monetary policy statement on September 30, 2014.
In its last policy statement in August, RBI had kept key interest rates unchanged--third time in row -- in view of the inflationary expectations and uncertain monsoon conditions.
