Retail inflation in June rises to three-month high of 4.81%

NEW DELHI: India’s retail inflation rose slightly to 4.81% in June from 4.31% in May but remained within RBI’s comfort zone for the fourth straight month.
The inflation in June is at a three-month high, mainly on account of hardening prices of food, according to the government data.
It was in February 2023 when the Consumer Price Index (CPI) based inflation was logged above the RBI’s comfort zone of under 6%.

he government has tasked the central bank to ensure retail inflation remains at 4 per cent with a margin of 2 per cent on either side. The central bank mainly factors in the CPI to arrive at its bi-monthly monetary policy decision. The next policy review is scheduled early next month.
Inflation for the food basket was at 4.49 per cent in June, higher than 2.96 per cent in May. The food basket accounts for nearly half of the CPI.
Last month, the Reserve Bank kept policy rates unchanged at 6.5 per cent and projected retail inflation for the current fiscal to average at 5.1 per cent, with June quarter inflation pegged at 4.6 per cent.
Meanwhile, India’s industrial production rose 5.2 per cent in May, according to the official data released on Wednesday.
Factory output measured in terms of the Index of Industrial Production (IIP) grew 19.7 per cent in May 2022.
(With inputs from PTI)