Comments
Retail inflation rose to a three-month high of 4.81 per cent in June, mainly on account of the hardening prices of food, according to the government data.
Inflation based on the Consumer Price Index (CPI) stood at 4.31 per cent, revised upward from 4.25 per cent in May and 7 per cent in June 2022.
The inflation, however, remains within the RBI's comfort level of below 6 per cent.
The previous high CPI was in March at 5.66 per cent.
Also read: Tomato inflation must be viewed in perspective
The government has tasked the central bank to ensure retail inflation remains at 4 per cent with a margin of 2 per cent on either side. The central bank mainly factors in the CPI to arrive at its bi-monthly monetary policy decision. The next policy review is scheduled early next month.
Inflation for the food basket was at 4.49 per cent in June, higher than 2.96 per cent in May. The food basket accounts for nearly half of the CPI.
Last month, the Reserve Bank kept policy rates unchanged at 6.5 per cent and projected retail inflation for the current fiscal to average at 5.1 per cent, with June quarter inflation pegged at 4.6 per cent.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.