Higher food prices push consumer inflation above May levels.
Key Highlights
- India’s retail inflation rose to 4.38% in June.
- Inflation increased from 3.93% recorded in May.
- Food inflation climbed to 5.32%.
- Rising food prices were the primary reason for the increase.
- RBI’s inflation target remains 4%, with a tolerance band of ±2%.
New Delhi: India’s retail inflation increased to 4.38% in June from 3.93% in May, mainly due to a rise in food prices, according to official government data.
Food inflation based on the Consumer Price Index (CPI) rose to 5.32% in June compared with 4.78% in the previous month, contributing significantly to the increase in headline inflation.
The latest figures remain within the Reserve Bank of India’s mandated inflation tolerance band. The central bank has been tasked with maintaining headline inflation at 4%, with an upper and lower tolerance limit of 2 percentage points.
The inflation data will be closely monitored by policymakers and financial markets as it could influence future monetary policy decisions.
