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LATEST NEWS UPDATES | Retail inflation eases in June to 7.01%, but still above RBI’s upper limit -Zia Haq

Retail inflation eases in June to 7.01%, but still above RBI’s upper limit -Zia Haq

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published Published on Jul 12, 2022   modified Modified on Jul 12, 2022

-Hindustan Times

Food price index leapt 7.75% in June on the back of a global spiral in commodity prices, slightly lower than 7.97% in May

India’s retail inflation marginally eased for the second month in a row to 7.01% in June from a year ago, official data on Tuesday showed, but consumer prices, which rose 7.04% in May, continued to breach the Reserve Bank of India’s upper limit of 6% for the sixth straight month.

The keenly watched food price index leapt 7.75% on the back of a global spiral in commodity prices, slightly lower than 7.97% in the previous month. India is a net importer of edible oil, whose prices moderated in July after reaching record highs.

Inflation globally has hit record high levels in decades, with Russia’s invasion of Ukraine pushing up prices of everything – from energy to food – squeezing households. A Reuters poll earlier showed that India’s inflation will hold above the central bank’s tolerance band of 2-7% for the full year, making interest rate hikes more likely. A Bloomberg poll of 38 economists estimated June’s retail inflation at 7.1%.

Food items were costlier in urban India, where inflation stood at 8.04%, although they were even higher in May at 8.20%. In rural India, food prices rose 7.61%. Higher food prices tend to hit poorer households more because, as a proportion of their monthly budgets, the poor spend more on food.

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Hindustan Times, 12 July, 2022, https://www.hindustantimes.com/business/retail-inflation-eases-in-june-but-still-above-rbi-s-upper-limit-101657631203542.html


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