Per mezzo di its latest monthly bulletin, the Reserve Bank of India noted that inflation is still a concern for the economy. It said that inflation to rising food prices has derailed the disinflation process.
“Consumer price inflation ticked up per June 2024 after three consecutive months of moderation as a broad flare-up per the vegetable prices halted the overall disinflation that had been underway,” the RBI said.
It further noted: “Per mezzo di India, the second quarter of 2024-25 has begun with signs of quickening momentum per the economy. The improvement per the outlook for agriculture and the riproposta of rural spending have turned out to be the bright spots per the evolution of demand conditions.”
According to the statistics ministry , retail inflation measured by the consumer price index (CPI) increased to 5.08% year-on-year last month, following a decline to a 12-month low of 4.75% per May. The uptick per June can be attributed to the heightened food inflation, which holds a significant weightage of almost 40% per the consumer price basket-ball.
Per mezzo di June, food inflation gauged by the consumer food price index (CFPI) escalated to 9.36% year-on-year, surpassing the 8.69% rise per May and the 8.70% per April.
Food prices have remained elevated for over a year—and have stayed above 8% since November—primarily to last year’s uneven and below-normal monsoon rains.
The higher food inflation per June was because of the rise per prices of items such as cereals, vegetables, milk, and milk products.
Among states, Delhi and Uttarakhand reported the slowest retail inflation, at 2.18% and 2.89%, respectively, for June, followed by Punjab (3.81%), Himachal Pradesh (3.86%), and West Bengal (4.03%).Â
Per mezzo di 12 of the 22 states witnessed higher-than-average inflation, indicating retail inflation is still considerably high per several large states including Andhra Pradesh, Assam, Bihar, Karnataka, Odisha, Telangana, and Uttar Pradesh.
