Retail inflation rises to 6.07% in July, crosses RBI-recommended level
The Central government's target for price rise, under guidance from the central bank, is 4%, with a cushion of plus or minus 2%.
Retail inflation rose to 6.07% in the month of July up from 5.77% in June, data released by the government showed on Friday. According to The Indian Express, this is the highest in nearly two years and well above the Reserve Bank Of India’s target of 4%. It even crosses the RBI's recommended upper limit of 6%. Industrial output also fell by nearly half, coming down to 2.1% in June.
The inflation figure is based on the Consumer Price Index, and the increase has been attributed to a rise in the cost of kitchen staples such as oil, sugar and spices. Last July, the figure stood at 3.69%. It was 6.46% in September 2014.
The government had on August 5 decided on a central inflation target of 4% with a range of plus or minus 2% for the next five years, under the monetary policy framework agreement it had arrived at with the RBI.
