Retail Inflation Surges to 5.08% in June, Kitchen Items See Major Hike
Retail inflation rose to 5.08% in June, driven primarily by increased prices for kitchen items, as per government data. The Consumer Price Index-based inflation saw a rise from 4.8% in May 2024 and 4.87% in June 2023. The RBI aims to maintain CPI inflation around 4% with a margin of 2% on either side.
- Country:
- India
Retail inflation has surged to 5.08 percent in June, driven by escalating prices of kitchen items, according to government data released on Friday.
The Consumer Price Index (CPI) based retail inflation stood at 4.8 percent in May 2024 and 4.87 percent in June 2023, marking a significant rise in just one year.
Inflation within the food basket jumped to 9.36 percent in June from 8.69 percent in May, according to data from the National Statistical Office (NSO). The government has instructed the Reserve Bank of India (RBI) to maintain CPI inflation at a target of 4 percent, with a margin of 2 percent on either side.
The RBI has projected CPI inflation for the financial year 2024-25 to be 4.5 percent, expecting it to be 4.9 percent in Q1, 3.8 percent in Q2, 4.6 percent in Q3, and 4.5 percent in Q4.
The central bank takes retail inflation as one of the key considerations while formulating its bi-monthly monetary policy.
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