Retail inflation reaches 3 month high
Food items have become costlier in the month of June, due to which the retail inflation rate has increased again. For the last few months, there was a decline in the figures of CPI, but it has increased in the month of June. Retail inflation rose to a three-month high of 4.81 per cent in June on rising food prices.
What was the figure in May
According to government data, inflation in food articles stood at 4.49 per cent in June, while it was 2.96 per cent in May. The weightage of food products in CPI is almost half. Despite the rise in retail inflation in June, it is below the Reserve Bank of India’s satisfactory level of six per cent.
The government has entrusted the Reserve Bank with the responsibility of keeping the retail inflation within a range of 2 percent to 4 percent. The Reserve Bank conducts a bi-monthly monetary review keeping in mind the retail inflation data.
RBI kept repo rates at 6.5
In last month’s monetary review, the Reserve Bank had kept the policy rate repo unchanged at 6.5 per cent. Along with this, they had predicted retail inflation to remain at 4.6 percent in the April-June quarter.
