Retail inflation, as measured by the Consumer Price Index (CPI), recorded a rate of 4.81 percent in June of this year.
Data released by the Ministry of Statistics and Programme Implementation highlights that the Consumer Food Price Index (CFPI) for the same period rose to 4.49 percent, compared to 2.91 percent in May. The increase in vegetable prices contributed significantly to this rise.
In terms of regional variations, rural areas experienced an inflation rate of 4.72 percent, while urban areas recorded a slightly higher rate of 4.96 percent in June.
It is noteworthy that the CPI for June remained within the Reserve Bank of India’s (RBI) tolerance band of 2-6 percent for the fourth consecutive month. This indicates a level of stability in retail inflation, offering some assurance in terms of price fluctuations.
The Ministry’s data provides valuable insights into the current state of retail inflation in India, with a particular focus on the impact of food prices. Monitoring inflation trends is crucial for policymakers and economic stakeholders as they strive to maintain price stability and make informed decisions regarding fiscal and monetary policies.