Food price inflation as per Consumer Food Price Index declined from 7.97% to 7.75%, but remained above 8% in urban areas at 8.04%.
Food price inflation as per Consumer Food Price Index declined from 7.97% to 7.75%, but remained above 8% in urban areas at 8.04%.
India’s retail inflation in June eased from 7.04% in May to 7.01%, but remained above the 7% mark for the third consecutive month. Price gains for the sixth month also exceeded RBI’s upper tolerance limit of 6%.
According to the Consumer Price Index released on Tuesday, rural inflation rose to 7.09% from 7.08% in May, while urban consumers faced a price hike of 6.92%. Food price inflation as per Consumer Food Price Index declined from 7.97% to 7.75%, but remained above 8% in urban areas at 8.04%.
Higher costs for cereals, and vegetables such as tomatoes, as well as milk and meat, clothing and footwear and services, were balanced by slower price increases in edible oils and fuels following the cut in excise and import duties.
Finance Minister Nirmala Sitharaman stressed on the need to keep a constant watch on prices and maintain the pace of growth.
“Till the beginning of the second half… the central bank and the government will have to be extremely cautious and cautious of price volatility. I will keep monitoring (inflation) item by item,” she said.
The Minister expressed hope that the monsoon would be favorable for the agriculture sector and would result in a good harvest, while also helping to ensure that rural demand remains intact. However, the government’s pointed attack on inflation will need to continue for some time, Ms Sitharaman insisted.
Edible oil inflation slipped below double digits to 9.36% for the first time in 27 months, while transport and communication inflation declined to 6.9% in June from 9.47% in May, reflecting the full impact of the cut in petrol and excise duty. reflects. diesel. “Retail inflation has now averaged 7.3% in the first quarter of 2022-23, slightly lower than the RBI’s forecast of 7.5%,” said DK Srivastava, chief policy advisor, EY India.
“Inflation in clothing and footwear in June is not much of a relief to the low-income consumer budget with high levels of 9.2% and 11.9% respectively. Fuel and light inflation also rose to 10.4% in June, from 9.5% in May. Thus inflationary pressures continue to persist due to global supply-side disruptions and resultant pressures on global crude and primary products prices,” he said. The central bank is expected to continue raising interest rates by about 50 to 60 basis points.
ICRA Chief Economist Aditi Nair said that the services sub-indices reflect a pick-up in inflation, which needs to be watched very carefully, however, she expects the overall inflation to fall below 7% in the coming months. Chances are.