Retail inflation stubbornly stays above 7%

July 13, 2022 12:00 am | Updated 05:40 am IST - NEW DELHI

India’s retail inflation inched lower to 7.01% in June, from May’s 7.04%, but stayed stuck above the 7% mark for the third straight month. Price gains also exceeded the RBI’s upper tolerance limit of 6% for the sixth month.

Rural inflation edged up to 7.09%, from 7.08% in May, while urban consumers faced a 6.92% price rise, as per the Consumer Price Index released on Tuesday. Food price inflation, as per the Consumer Food Price Index, eased to 7.75%, from 7.97%, but remained above 8% in urban areas, at 8.04%.

Higher costs for cereals, and vegetables such as tomatoes, as well as milk and meat, clothing and footwear and services, were balanced out by slower price gains in edible oils and fuel, following excise and import duty cuts.

Finance Minister Nirmala Sitharaman emphasised the need to keep a constant vigil on prices and sustain growth impulses. “As the Reserve Bank has estimated, till the start of the second half... the central bank and the government will have to be extremely mindful and watchful of price movements. I will keep monitoring (inflation) item by item, to rein in prices for anything that goes haywire,” she said.

Top News Today


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.