Retail inflation rises to four-month high of 5.08% in June
Costly vegetables and pulses were largely responsible for the price rise in the previous month.
India’s retail inflation increased to 5.08% in June, the highest in four months, government data released on Friday showed.
The price rise indicator stood at 4.80% in May, 4.83% in April and 4.85% in March.
The Reserve Bank of India is tasked with keeping inflation at 4%, with a tolerance band between 2% and 6%.
Food inflation, which accounts for nearly half of the overall consumer price basket, rose to 9.36% in June from 8.69% in May at the national level. The price rise in food items was higher in urban areas (9.55%) than in rural areas (9.15%).
The highest inflation was in vegetables at 29.32%, followed by “pulses and products” at 16.07%.
June was the eighth consecutive month when food inflation was above 8%.
“Despite favourable base effect inflation in June 2024 reversed five months declining trend,” Moneycontrol quoted India Ratings and Research economists Paras Jasrai and Sunil K Sinha as saying. “The food inflation in June 2024, after being less than 9 percent for five consecutive months jumped to six months high of 9.36 percent.”
Industrial output grew by 5.9% in May
Official data released on Friday also showed that the country’s industrial production grew by 5.9% in May, driven by strong growth in the mining and power sectors. This was higher than the figure of 5.0% recorded in April.
The mining sector grew at 6.6%, electricity at 13.7% and manufacturing at 4.6%.
The index of industrial production grew at 5.4% from April to May in this financial year, as compared to 5.1% in the same period a year ago.
