Though food inflation declined marginally in August 2011 from its level in July, the overall inflation rose to 11.3% in August from 11.0% in July, basically due to significant increase in non-food inflation (from 6.5% in July to 8.8% in August!). Interestingly, the rise in non-food inflation is higher in rural areas than urban areas!
The significant increase in non-food inflation lately may be due to the second-round effect (wage rise) of high food inflation and, usually it persists for a longer term.
Here is the link for latest inflation data.
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