RBI reports easing core inflation, anticipates further reduction in retail inflation

The Reserve Bank of India (RBI) has recently reported a stabilization in core inflation, indicating that price pressures within the economy are beginning to ease. The central bank detailed this development in its monthly bulletin on Tuesday, attributing the trend to a decrease in vegetable prices in August, which led to a reduction in retail inflation to 6.8%.

The RBI anticipates this downward trend will extend into September, with further reductions expected in retail inflation. The correction in prices has broadened beyond just the three main vegetables tomato, potato and onion. The bank also expressed optimism for cereal prices, citing active supply side interventions as a supportive factor.