INSUBCONTINENT EXCLUSIVE:
The RBI's Monetary Policy Committee adjusts key ratesbased on changes in inflation trends
Consumer inflation in the country came in at 6.69 per cent in August, a notch lower compared to 6.73 per cent in
the previous month and slightly better than economists' estimates,government data showed on Monday
Marginally easing food prices, with the gradual lifting of coronavirus-related restrictions, led to the improvement in the overall inflation
The Reserve Bank of India (RBI) tracks retail inflation - or the rate of increase in consumer prices as determined by the Consumer Price
Index (CPI) - primarily for making changes to its monetary policy
cent in July.The latest data shows consumer inflation has remained above the central bank's medium term range of 4-6 per cent for a fifth
month in a row.Last month, the Reserve Bank of India had refrained from easing the monetary policy further, after months of aggressive cuts
unlocking phases, the supply-side disruption is surging the food and fuel prices
trends.However, in recent months, the central bank has shifted its focus to revival of economic growth from keeping inflation under control,
subside going forward.Separate official data released during market hours on Monday showed wholesale prices in the country rose 0.16 per
cent last month, having remained in a deflationary mode for four months in a row.
