Official data show a rise in June Retail Inflation of 6.26 per cent

June is the second consecutive month when headline retail inflation is above the Monetary Policy Committee’s inflation targeting range of 4 (+/-2) percent.

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.”

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