Retail inflation rises to 5.08% in July


A fruit vendor tends to customers at a fruit and vegetable wholesale market in Mumbai, India, February 8, 2023.

A fruit vendor tends to customers at a fruit and vegetable wholesale market in Mumbai, India, February 8, 2023.
| Photo Credit: Reuters

Retail inflation increased to 5.08% in June as kitchen items became dearer, according to government data released on July 12.

The Consumer Price Index (CPI) based retail inflation was 4.8% in May 2024 and 4.87% in June 2023 (previous low).

Inflation in the food basket was 9.36% in June, up from 8.69% in May, according to the data released by the National Statistical Office (NSO).

The government has tasked the Reserve Bank of India (RBI) to ensure that the CPI inflation remains at 4% with a margin of 2% on either side.

The RBI projected the CPI inflation for 2024-25 at 4.5%, with Q1 at 4.9%, Q2 at 3.8%, Q3 at 4.6%, and Q4 at 4.5%.

The central bank mainly factors in the retail inflation while deciding its bi-monthly monetary policy.

(with inputs from PTI)

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