The government has said that the headline inflation based on the retail Consumer Price Index- CPI recorded a moderate increase from 6.71 per cent in July to 7 per cent in August this year.<br />''<br />''In a series of tweets, Finance Ministry said, this increase is attributable both to an adverse base effect and an increase in food and fuel prices- the transient components of CPI inflation.<br />''<br />''It said core inflation calculated by excluding the transient component of CPI, food and beverages, fuel and light was recorded at 5.9 percent in August 2022, remaining below the tolerance limit of 6 percent for the fourth consecutive month.<br />''<br />''The Ministry said the prices of major inputs like iron ore and steel have sobered in the global markets. This coupled with the measures taken by the government to rationalize tariff structures of inputs to augment domestic supply has helped to keep cost push inflation in consumer items under control.<br />''<br />''It said, despite erratic monsoons and negative seasonality in vegetable prices, food inflation in August was still lower than the April peak of the current year.<br />''<br />''The Ministry said, with global inflation pressures, inflationary expectations remain anchored in India with stable core inflation. To soften the prices of edible oils and pulses, tariffs on imported items have been rationalized periodically and stock limits on edible oils have been kept, to avoid hoarding.<br />''<br />''Inflation in oils and fats moderated to 5.62 per cent and pulses and products to 2.52 per cent.<br />''<br />''The Ministry said the government has prohibited exports of food products like wheat flour, rice, and maida to keep domestic supplies steady and curb the rise in prices. The impact of these measures is expected to be felt more significantly in the coming weeks and months. <br />