<h1>Retail inflation jumps to 2.07% in August; food deflation persists, core inflation 4.3% - central bank target 4%±2%</h1> Retail inflation rose to 2.07% in August from 1.61% in July, driven mainly by higher prices for vegetables, meat, fish, eggs and oils, while annual food inflation was -0.69%, according to official consumer price index data. Rural inflation increased to 1.69% and urban inflation to 2.47%; state variation ranged from about 9.04% to -0.66%. Core inflation edged to 4.3%. The data is legally significant for monetary policy because the central bank is mandated to target 4% inflation with a ±2% band and primarily uses CPI in its bi-monthly policy decisions; crop and weather risks were flagged as monitoring points.