Vegetable prices soared by up to 29.32 per cent during the month as the scorching heat wave in northern states affected production, while pulses prices rose by 16.07 per cent during the month.
Cereal prices also increased by 8.65 percent during the month.
Inflation had eased to a 12-month low of 4.75 percent in May after falling to 4.83 percent in April, which was an 11-month low. The June figures mark a break with the downward trend that had been established in recent months.
However, the downward trend in cooking oil prices continued in June with a drop of 2.68 percent over the month. Spice price growth slowed to 2.06 percent from 4.27 percent in May.
Food inflation, which accounts for almost half of the overall consumer price basket, rose 8.36 percent compared to 7.87 percent in May.
The RBI has set a medium-term target of 4 per cent for retail inflation before cutting interest rates to accelerate growth.
RBI Governor Shaktikanta Das on Thursday said it is too early to talk about cutting interest rates due to the uncertain economic environment and inflation remaining close to 5 per cent.
“The overall economic environment globally and in India is uncertain enough to talk in terms of an interest rate cut. General CPI inflation remains close to 5 percent and according to the surveys carried out, it is expected to close to 5 percent and I think it is too early to talk about cutting interest rates,” said the Governor.
The RBI is keen on keeping inflation under control to ensure growth with stability and kept the repo rate steady at 6.5 per cent for the eighth consecutive time in its bi-monthly monetary policy earlier this month.
While the RBI has raised its projected GDP growth estimate to 7.2 per cent for 2024-25 from 7 per cent earlier, it has kept its retail inflation projection at 4.5 per cent.
Cereal prices also increased by 8.65 percent during the month.
Inflation had eased to a 12-month low of 4.75 percent in May after falling to 4.83 percent in April, which was an 11-month low. The June figures mark a break with the downward trend that had been established in recent months.
However, the downward trend in cooking oil prices continued in June with a drop of 2.68 percent over the month. Spice price growth slowed to 2.06 percent from 4.27 percent in May.
Food inflation, which accounts for almost half of the overall consumer price basket, rose 8.36 percent compared to 7.87 percent in May.
The RBI has set a medium-term target of 4 per cent for retail inflation before cutting interest rates to accelerate growth.
RBI Governor Shaktikanta Das on Thursday said it is too early to talk about cutting interest rates due to the uncertain economic environment and inflation remaining close to 5 per cent.
“The overall economic environment globally and in India is uncertain enough to talk in terms of an interest rate cut. General CPI inflation remains close to 5 percent and according to the surveys carried out, it is expected to close to 5 percent and I think it is too early to talk about cutting interest rates,” said the Governor.
The RBI is keen on keeping inflation under control to ensure growth with stability and kept the repo rate steady at 6.5 per cent for the eighth consecutive time in its bi-monthly monetary policy earlier this month.
While the RBI has raised its projected GDP growth estimate to 7.2 per cent for 2024-25 from 7 per cent earlier, it has kept its retail inflation projection at 4.5 per cent.