Food prices push India's retail inflation higher in August

Most of the new jobs were in the categories of part-time or self-employment

Most of the new jobs were in the categories of part-time or self-employment

The Reserve Bank of India (RBI), which cut its repo rate by 0.25 percentage points last month, retained its neutral policy stance, citing uncertainty on the future trajectory of inflation because of several uncertainties.

The spiralling costs of mobile phones aside, the United Kingdom consumer price index is expected to see a modest increase in August, with headline inflation having surprised by holding steady at 2.6% in July, and prices then actually falling month-on-month by 0.1%. Economists had expected the figure to rise to 2.8 per cent.

The area saw prices rise by 4.6 per cent in the 12 months to the end of August, compared with 3.2 per cent in July.

It attributed the increase to the fall in the value of the pound since the European Union referendum which has forced up prices for imported goods - costs which are evidently being passed on to shoppers at a time they can least afford them.

CPIH rose to 2.9% in August from 2.6% in July and against expectations of 2.8%, while Core CPI rose to 2.7% from 2.4% beating expectations of 2.5%.

The Bank's monetary policy committee (MPC) is due to make its latest decision on rates following a meeting on Thursday.

Inflation had eased to 1.46 percent in June - its slowest pace since India started releasing retail inflation figures in January 2012, based on combined data for rural and urban consumers.

"We still think the chances of a rate rise this year are remote; domestically-generated inflation is subdued, inflation expectations have remained well-anchored and GDP growth is too weak".

As per the inflation data, food inflation in August moved up to 1.52 per cent.

There was upward pressure on clothing and fuel prices for the month and there was wider upward pressure on finished goods prices for the month.

Food, alcohol and tobacco price growth dropped between July and August but otherwise all sectors experienced inflationary pressure. With the rate of inflation rising sharply, investors are likely anticipating the UK's first interest rate hike in a decade, could come sooner than expected.

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