Food prices drive up retail inflation to 3.36 per cent in August

Mumbai: Consumer inflation in August jumped to 3.36 per cent in the month of August, driven by high food prices.

According to data released by the government, the retail inflation rate for the month of July stood at 2.36 per cent.

Inflation rose to 2.36 percent in July, after consistently falling for three straight months. However, the inflation rate still remains below the Reserve Bank's 4 per cent target.

A Reuters poll had predicted August retail inflation at 3.20 percent, with forecasts ranging from 2.50 per cent to 3.55 per cent. Rains this year caused heavy damages to crops in some areas and prices of items like tomatoes and onions were seen shooting up.

This rise in inflation rules out hopes of further rate cut by the RBI in its monetary policy meet in October.