Retail inflation is still low with the start of commodity tax rates and services

Although inflation in retailer has increased marginally in August, it is seen that it is still low in the coming months, as the effects of price cuts fall within the framework of commodity and services tax in playing and analysts expect that the Indian Reserve Bank will maintain the current situation on prices in the upcoming policy.

Retirement enlargement increased as measured by inflation based on the consumer price index or retail inflation to 2.07 % in August from 1.61 % in July this year. However, it was much less than 5.66 % in August last year.

The official data released on Friday revealed that the food inflation measured by the inflation of consumer food prices remained in the negative lands by -0.69 % in August this year rising from -1.76 % in July.

“Increased inflation in the title and food enlargement during the month of August is mainly due to the increase in enlarged vegetables, meat, fish, oil, fat, personal care and influence, eggs,” an official statement said.

Vegetable enlargement in negative lands remained by -15.92 % in August, rising from -20.69 % in July.

Paras Jasri, Assistant Director of India and Research Categories in India indicated that the flood mode led to a decrease in food prices to 0.69 % in August 2025, leading to a rise in retail inflation from less than 97 months of less than 1.6 % in July. “The food consumer (urban areas),” he said. In the 26th fiscal year, inflation is likely to be 3 %, as he said.

While the commodity and services tax rates will enter into force as of September 22, analysts expect to look at the full impact in October.

“The benefits of commodity and services tax on FMCG products as well as home commodities (2.5 %) will partially feel in September, and from October to a large extent up,” said Madan Sabnafis, chief economist at Barouda Bank.

Noting that the inflation number is more on the expected lines, Sabnavis also said that it is unlikely to change the RBI offer on politics. He said: “Involving inflation was in any case to be benign through RBI expectations and focus would be more growing. Given the path of the expected stable gross domestic product, we may expect the current price and position this policy.”

The RBI monetary policy committee is scheduled to meet later this month from September 29 to October 1. It has already reduced prices by 100 basis points this orthopedic year to enhance growth. She expected inflation by 3.1 % for this fiscal year at its last meeting from 4-6 August.

Hanna LuCharnigna Shores, the head of the Economy of Asia and the Pacific at the S& P Global Market Intelligence, said that the agency expects the inflation to accelerate in the coming months, although the effects of commodity and services tax discounts should reduce the frequency of acceleration from October on the way, while maintaining the main inflation rate inside or near the range The target of the central bank is 4 % until the end of 2025.

“In general, we enlarge the consumer price index to an average of 3.3 % in the current fiscal year, a decrease from 3.5 % expected before the announcement of the goods and services tax repair,” she noticed.