New Delhi: Retail inflation rose to a four-month high of 5.08 per cent in June as food products, including vegetables, became more expensive, according to government data released on Friday.
Retail inflation based on the Consumer Price Index (CPI) had been declining since January, before rising again in June.
CPI-based retail inflation was 4.8 percent in May 2024 and 4.87 percent in June 2023.
The previous high was in February at 5.09 percent.
Food basket inflation was 9.36 percent in June, compared to 8.69 percent in May, according to data from the National Statistics Office (ONE).
The government has tasked the Reserve Bank with ensuring that CPI inflation remains at 4 per cent with a margin of 2 per cent on either side.
The highest inflation was recorded in vegetables at 29.32 percent, followed by "pulses and produce" at 16.07 percent in June on an annual basis.
Cereals and derived products, as well as fruits, were also more expensive in June than in the same month last year.
Retail inflation in rural areas was 5.66 per cent, higher than 4.39 per cent in urban India, according to NSO data.
Commenting on the data, Aditi Nayar, chief economist at ICRA, said the rebound in headline CPI inflation to a four-month high in June 2024 was largely due to a pick-up in food and beverage inflation at more than 8 percent, amid a sharp decline. sequential increase in vegetable prices.
Except for food and beverages, he said inflation in all other subgroups remained below the 4 percent mark in June 2024.
"We do not rule out a change of stance in October 2024 and a rate cut of 25 bps each in December 2024 and February 2025, followed by a prolonged pause, if the food inflation outlook turns decidedly favorable thanks to a normal magnitude and a favorable distribution of rainfall in the rest of the monsoon season, and there are no other shocks, neither global nor internal," he stated.
According to NSO data, the highest inflation was recorded in Odisha (7.22 per cent) and the lowest in Delhi (2.18 per cent).
NSO collects price data from 1,114 selected urban markets and 1,181 villages covering all states and UTs in a weekly list. During June 2024, NSO collected prices from 99.7 suppressed villages and 98.6 percent urban markets.
Retail inflation based on the Consumer Price Index (CPI) had been declining since January, before rising again in June.
CPI-based retail inflation was 4.8 percent in May 2024 and 4.87 percent in June 2023.
The previous high was in February at 5.09 percent.
Food basket inflation was 9.36 percent in June, compared to 8.69 percent in May, according to data from the National Statistics Office (ONE).
The government has tasked the Reserve Bank with ensuring that CPI inflation remains at 4 per cent with a margin of 2 per cent on either side.
The highest inflation was recorded in vegetables at 29.32 percent, followed by "pulses and produce" at 16.07 percent in June on an annual basis.
Cereals and derived products, as well as fruits, were also more expensive in June than in the same month last year.
Retail inflation in rural areas was 5.66 per cent, higher than 4.39 per cent in urban India, according to NSO data.
Commenting on the data, Aditi Nayar, chief economist at ICRA, said the rebound in headline CPI inflation to a four-month high in June 2024 was largely due to a pick-up in food and beverage inflation at more than 8 percent, amid a sharp decline. sequential increase in vegetable prices.
Except for food and beverages, he said inflation in all other subgroups remained below the 4 percent mark in June 2024.
"We do not rule out a change of stance in October 2024 and a rate cut of 25 bps each in December 2024 and February 2025, followed by a prolonged pause, if the food inflation outlook turns decidedly favorable thanks to a normal magnitude and a favorable distribution of rainfall in the rest of the monsoon season, and there are no other shocks, neither global nor internal," he stated.
According to NSO data, the highest inflation was recorded in Odisha (7.22 per cent) and the lowest in Delhi (2.18 per cent).
NSO collects price data from 1,114 selected urban markets and 1,181 villages covering all states and UTs in a weekly list. During June 2024, NSO collected prices from 99.7 suppressed villages and 98.6 percent urban markets.
