Steps to check prices will be felt more significantly in few months: FinMin
The Finance Ministry on Monday attributed the rise in inflation to base effect and increase in food and fuel prices, and stressed that initiatives taken by the government to curb price rise will be felt more significantly in the coming months.
According to the data, the retail inflation inched up to 7 per cent in August from 6.71 per cent in July.
The ministry further said that the core inflation, which is calculated by excluding the transient components of CPI --'food and beverages' and 'fuel and light' at 5.9 per cent remained below the tolerance limit of 6 per cent for the fourth consecutive month.
"The headline inflation based on retail CPI recorded a moderate increase from 6.71 % in July 22 to 7.0 % in August 22. This increase is attributable both to an adverse base effect and an increase in food & fuel prices - the transient components of CPI inflation," the ministry said in a series of tweets.
This is the second instance since RBI adopted the inflation targeting approach ...