Millennium Post

Vegetables on fire: June retail inflation increases to 9.87%

Retail inflation inched up to 9.87 per cent in June, from 9.31 per cent in the previous month, on costlier vegetables and food items.
The spike in consumer price index-based inflation came after three consecutive months of decline in the price rise. The food inflation in June also rose to 11.84 per cent from 10.65 per cent in the previous month, according to the official data released on Friday.
The steepest rise was witnessed in vegetables prices which jumped 14.55 per cent in month over the year-ago period. Prices of fruits too witnessed a significant rise.

Fruit and vegetables prices are generally up in the month of June due to rains, experts said. Protein rich items like egg, fish and meat too were dearer in June though rates of pulses and related products eased somewhat.

However, the rate of price rise in cereals and similar items basket was higher at 17.59 per cent as against 16.29 per cent in May.
The wholesale price index-based inflation was at three-and-a-half year low of 4.7 per cent in May. The WPI data for June is scheduled to be released on 15 July.

Inflation data is factored in by the Reserve Bank in its monetary policy. The central bank is scheduled to review the first quarter monetary policy on 30 July. The industry is demanding cut in key policy rate to push economic activities. Industrial output contracted by 1.6 per cent in May on account of poor show by the manufacturing and mining sectors.
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