NEW DELHI – Retail inflation inched up to a 22-month high level of 5.77 % in June on increase in food prices, including that of key kitchen staples like vegetables and cereals.
With inflation remaining at an elevated level and above the 5 % mark, Reserve Bank’s next monetary policy review in August would be keenly watched as inflation targeting has been the main objective of the apex bank.
The retail inflation measured on Consumer Price Index (CPI) was marginally lower at 5.76 % in the previous month, while it was 5.40 % in June last year.
In August 2014, consumer inflation was at 7.8 %.
The overall food inflation moved up to 7.79 % in June from 7.47 % in the previous month, government data showed on Tuesday.
Inflation in vegetables was up at 14.74 % against 10.77 % in May and in cereals and related products was 3.07 % compared to 2.59 % in the previous month.
However, the rate of price rise in pulses declined to 26.86 % during the month while it stood at 31.57 % in May.
Protein rich items, like meat, fish, eggs, milk saw a marginal decline in comparison to May.
Inflation in fuel and light basket was 2.92 % in June as against 2.94 % in the previous month.
The Ministry of Statistics and Programme Implementation collects data from selected towns and villages to calculate CPI-based retail inflation.
In its bi-monthly policy released last month, RBI had maintained status quo in key policy rate, citing higher upside risks to ‘inflation trajectory’.
The retail inflation in rural areas was at 6.2 % and in urban areas it was 5.26 % in June, showed the data.
