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Simply put
- Retail inflation strikes 4-month high at 5.08% in June
- Food inflation increases to 9.55% from 8.69% in May
- IIP grows by 5.9% in May from 5% in April
Retail inflation rose to 5.08% in June, increasing to a 4-month high up on a yearly basis from 4.80% in May last month, based on federal government information launched on Friday, July 12, 2024.
“Year-on-year inflation rate based upon All India Consumer Price Index (CPI) number is 5.08% (Provisional) for the month of June, 2024. Corresponding inflation rate for rural and city is 5.66% and 4.39%, respectively,” stated a release from the Ministry of Statistics & & Programme Implementation.
The inflation rate has actually remained within the Reserve Bank of India’s (RBI) tolerance series of 2-6%.
Food inflation increased to 9.55% in June, up from 8.69% in May and 4.55% in June 2023. Rural inflation reached 5.67% in June from 5.34% in May and 4.78% in June 2023.
On the other hand, city inflation somewhat reduced to 4.39% in June from 4.21% in May and 4.96% in June 2023.
India’s Index of Industrial Production (IIP) increased by 5.9% in May compared to 5% in April, according to information launched by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday.
The CPI inflation came partially greater than our expectations. While the food inflation dangers will continue to control in near term, we anticipate the much better sowing patterns and spatial circulation of rains to ultimately relieve the rate pressures beyond these unstable months. Having stated that, the Central Bank will remain in no rush to alleviate financial policy provided the headroom from robust development in the background of near term inflation threats,” stated Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank.
Wilmer Bode
Johnnie King
Kraig Prohaska