The headline retail inflation pace to a four-month high of 5.08% in June, from a revised 4.8% in May
Costlier vegetables, cereals and fruits spurred the rise in food prices paid by Indian consumers to a six-month high of 9.4% in June
Rural inflation spiked to 5.66% from 5.3% a month ago.
Urban consumers faced a price rise of 4.4% compared with 4.2% in May.
Urban India faced a higher food inflation of 9.55% while it was 9.2% for their rural peers.
While retail inflation has now been below 6% since September 2023, it is still far from the central bank’s 4% target and June’s Consumer Price Index (CPI) print dims the prospects of an interest rate cut in this calendar year as the Reserve Bank of India is waiting for a durable return to its target rate
The heatwave and delayed monsoon onset in parts of the country spurred vegetable prices 29.3% higher in June, from a 27.3% rise in May, making it the eighth successive month of double-digit rise in prices.
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