Question

In August 2024, retail inflation increased to 3.65%, remaining below the RBI's target of 4%. What was the primary driver of the rise in food inflation?

• A. Increase in fuel prices
• B. Higher prices for vegetables, fruits and other items
• C. Rising demand for processed foods
• D. Surge in international food prices

Answer 1

Answer:

B. Higher prices for vegetables, fruits and other items

The primary driver of the rise in food inflation in August 2024 was higher prices for vegetables, fruits, and other items. India's retail inflation was 3.65% in August 2024, according to the All India Consumer Price Index (CPI) data released on Thursday, September 12, 2024. The combined inflation (rural and urban) fell to 3.65% in August 2024, compared to 6.83% in August 2023. However, it has increased by 110 basis points when compared to the previous month's 3.54%.