India’s retail inflation have eased up its marginal value in the month of June but it has remained above the upper limit of the central bank’s inflation target for two consecutive month.
Data released by the statistics office has showed a retail inflation which stood at 6.26 per cent in the month of June, down from 6.3% in May and also with this the food inflation has accelerated to the marginal value of 5.15 per cent.
It added its survey into data showing, Global crude oil prices have split into two-year high mark of $75 per barrel. As per the latest survey data given by RBI in the month of May, “one-year ahead inflation expectations of households have risen to 10.9%, from 10.2% in March, which has been partly reflecting the uncertainty by the second wave of COVID-19. On accounting these factors, RBI has also projected CPI inflation at 5.2% during the June quarter, 5.4% in the September quarter, 4.7% in the December quarter, and 5.3% in the March quarter of FY22, with risks broadly balanced.”
The Data added a statement which stated as, “With the encouraging progress of the south-west monsoon, supply side interventions in the pulses and edible oils market, and gradual unlocking of states with declining caseload would mitigate cost pressures going forward. However, rising international commodity prices, especially of crude and logistics costs, pose upside risks to the inflation outlook.”
