A long battle against inflation

Containing inflation remains challenging

The retail inflation rate for August at 7 per cent surprised most analysts on the upside. Since the increase in prices has been fairly broad-based, it is likely the rate will remain elevated in the coming months. In August, for instance, prices of cereals went up by 9.57 per cent, while vegetable prices increased by over 13 per cent. Overall, the food price inflation rate was at 7.62 per cent. Even as core inflation continues to remain sticky, the pressure on food prices may continue, given the lower rainfall in some parts of the country. The government on its part