India's June Retail Inflation Eases Sequentially, But Still Over 6%

India's June retail inflation eases sequentially, but still over 6% (Lead)

(Photo: IANS)

India's June retail inflation eased up on a sequential basis but still managed to remain above the 6 percent threshold.

According to the data furnished by the National Statistical Office (NSO), the Consumer Price Index (CPI) slipped to 6.26 percent last month from 6.30 percent in May.

Region wise, the CPI Urban rose to 6.37 percent last month from 5.91 percent in May, and the CPI Rural climbed to 6.16 percent in June from 6.55 percent in May.

As per the NSO data, the Consumer Food Price Index increased to 5.15 percent last month from 5.01 percent in May.

The CFPI readings measure the changes in retail prices of food products.

The macro-economic data assumes significance as it is still above the retail inflation range of the Reserve Bank of India, which has set a range of 2-6 percent for retail price based inflation.

The high retail inflation reduces the chance of the RBI to further loosen up the monetary policy.

In terms of CPI YoY inflation rate, pulses and products' prices jumped higher by 10.01 percent in June 2021.

Meat and fish prices rose 4.83 percent, eggs became dearer by 19.35 percent and the overall price of food and beverages category was up 5.58 percent.

However, vegetable prices declined by 0.70 percent.

Besides the official data, the inflation rate for fuel and light was at 12.68 percent.