New Delhi, Sept 13 (KNN) India’s core CPI inflation eased to 6.9 per cent in August 2014 from 7.4 per cent in July 2014.  All India annual retail inflation declined to 7.8 per cent in August 2014 from 7.96 per cent in July 2014, mainly due to decline in inflation for vegetables, housing, fuel and transport communication. 

The experts are expecting that RBI will hold interest rates when it reviews monetary policy on September 30. RBI mainly tracks the CPI for setting the lending rates.

The corresponding provisional inflation rates for rural and urban areas for August 2014 are 8.35 per cent and 7.04 per cent, respectively.

Inflation rates for rural and urban areas for July 2014 had stood at 8.37 per cent and 7.42 per cent, respectively.

The inflation for 'clothing, bedding and footwear' and miscellaneous items also eased to 8.5 per cent and 5.9 per cent in August 2014. However, the inflation 'food, beverages and tobacco' group increased to 9.2 per cent in August 2014 from 9.1 per cent in July 2014.

CPI inflation data represents changes in prices of all goods and services purchased for consumption by urban households.  A CPI can be used to index (adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values. (KNN/SD)