Retail inflation up in August to 7%, IIP slows sharply

Retail inflation accelerated in August on the back of high food prices, reversing a three-month downward trend and remained above the Reserve Bank of India’s (RBI) upper tolerance level of 6% for the eighth consecutive month, which may prompt the central bank to raise interest rates again. The retail inflation data showed cereal and product prices rose 9.6% in August while vegetable prices shot up 13.2% during the month.

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