Retail inflation, based on Consumer Price Index (CPI), slipped to 6.83 percent in August this year. According to the Ministry of Statistics and Programme Implementation data released today, rural areas saw a slightly higher inflation rate at 7.02 percent compared to urban areas at 6.59 percent.

CPI for the last month fell from a 15-month high of 7.44 percent in July, mainly due to a decline in vegetable prices. The Consumer Food Price Index (CFPI) for August stood at 9.94 percent falling from 11.51 percent in July.

The retail inflation still remains above the Reserve Bank of India's upper tolerance limit of 6 percent. The Government had mandated the Central Bank to maintain retail inflation at four percent with a margin of two percent on either side.