India’s consumer price inflation rate continued to rise, and was at 5.00% in June, data released by the Ministry of Statistics and Programme Implementation showed on Thursday. This is higher than the final figure of 4.87% for May.
The rise in inflation was driven by higher fuel prices and a depreciating rupee, according to Reuters. June was the eighth straight month in which inflation exceeded the Reserve Bank of India’s target of 4%.
The retail inflation rate in urban areas was 4.85% in June, against 4.72% in May. In rural areas, retail inflation stood at 5.00% in June, compared to 4.88% in May. The Consumer Food Price Index showed an inflation of 2.91% in June, compared to 3.10% in May.
In June, the Reserve Bank of India increased the repo rate by 25 basis points to 6.25% for the first time since January 2014. The central bank raised the interest rates as inflation has increased and economic growth has recovered in recent months.
India’s industrial output grew by 3.2% in May compared to the same month last year, government data showed on Tuesday. Manufacturing grew at 2.8% in May, much slower than the 5.2% rise in April.