Easing prices of vegetables, cereals and petroleum products brought down retail inflation marginally to 7.8 per cent in August.
Consumer Price Index (CPI) based or retail inflation stood at 7.96 per cent in July. In August 2013, retail inflation was at 9.52 per cent.
However, food inflation during the month under review rose to 9.42 per cent over 9.36 per cent in July, an official release said on Friday.
The rate of price rise in vegetables stood at 15.15 per cent in August as against 16.88 per cent in the previous month.
Rate of price increase in cereals and its products turned lower at 7.39 per cent and that for fuel and light it came down at 4.15 per cent.
However, prices of fruits during the month went up with 24.27 per cent rate of inflation.
Inflation in milk and milk products increased to 11.70 per cent during the month under review. Also, pulses and its products were costlier at 6.88 per cent.
Amongst others, food and beverages witnessed no change in price rise at 9.16 per cent, while non-alcoholic beverages prices went down at 6.24 per cent in August.
Eggs, fish and meat were costlier at 7.71 per cent during the month.
Inflation in rural and urban areas in August was 8.35 per cent and 7.04 per cent, respectively. In July, it was 8.37 per cent and 7.42 per cent.
The Reserve Bank will unveil its fourth bi-monthly monetary policy statement on September 30, 2014.
In its last policy statement in August, RBI had kept key interest rates unchanged--third time in row -- in view of the inflationary expectations and uncertain monsoon conditions.
