New Delhi, Sep 13 (IANS): Lower food prices eased India's August retail inflation on a sequential and year-on-year basis.

Data, furnished by the National Statistical Office (NSO), showed that the Consumer Price Index (CPI) slipped to 5.30 per cent last month from 5.59 per cent in July.

Even on YoY basis, last month's retail inflation was lower than 6.69 per cent recorded for August 2020.

The macro-economic data assumes significance as it brings retail inflation mark in the range of the Reserve Bank of India's set target of 2-6 per cent for CPI inflation.

The declining retail inflation rate reduces the chance of the RBI to further loosen up the monetary policy.

Region wise, the CPI Urban fell to 3.28 per cent last month from 4.56 per cent in July, and the CPI Rural came down to 3.08 per cent in August from 3.55 per cent in July.

As per the NSO data, the Consumer Food Price Index decreased to 3.11 per cent last month from 3.96 per cent in July.

The CFPI readings measure the changes in retail prices of food products.