India’s retail inflation rises to 4-month high of 5.08% in June

India’s retail inflation rose to four-month high of 5.08 percent in June compared with 4.75 percent in the previous month as food inflation galloped to 9.4 percent.

By Connect Gujarat Desk 12 Jul 2024 in Business

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India’s retail inflation rises to 4-month high of 5.08% in June

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India’s retail inflation rose to four-month high of 5.08 percent in June compared with 4.75 percent in the previous month as food inflation galloped to 9.4 percent.

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Inflation had dipped to a 12-month low of 4.75 percent in the previous month, despite food inflation hovering around 8.7 percent.

June marks the eighth consecutive month of over 8 percent food inflation, data released on July 12 showed.

Sequentially, consumer price index, which is used to measure inflation, was up 1.33 percent compared with the previous month, with food inflation rising 3.17 percent.

Within food, vegetables and pulses inflation continued to remain in double digits with 29.3 percent and 16.1 percent rise, respectively.

Pulses inflation has remained in double digits for 13 consecutive months, whereas vegetables inflation has witnessed a double digit increase for the eighth consecutive month.

Inflation in miscellaneous items at 3.41 percent remained below 4 percent for the sixth consecutive month.

High inflation is unlikely to deter Reserve Bank of India from its current stance of keeping the policy rate on hold.

The Reserve Bank of India’s monetary policy committee had kept the policy rate unchanged at 6.5 percent for the eighth consecutive time at its meeting in June.

The central bank’s monetary policy committee will meet from August 6-8.

The cooling off of US inflation in June has increased the possibility of a rate cut by the Federal Reserve in September.