The latest data released by the National Statistical Office (NSO) last week revealed that Consumer Price Index (CPI) — or retail inflation — increased by more than half percentage point in June to reach 4.81 per cent over 4.25 per cent of May. It may be recalled that in May, the retail inflation had dipped from 4.7 per cent of April to reach a 20-month low of 4.25 per cent. The surge in retail inflation in June might be an indicator of the commencement of undoing of the price stability gained over the past few months. The Reserve Bank of India must be credited for its farsightedness and cautious approach in maintaining the hardened policy stance despite initial gains over the last few months. Had the Central bank budged from its position of anchoring inflation, worse could have followed. As for now, despite the June surge, the average retail inflation for the first quarter hovers around 4.6 per cent. While a worse situation seems to have been avoided, there are enough causes to be worried. The recent surge in retail inflation has come riding on the back of exorbitant price gains in the food and beverages segment, particularly vegetables. This is worrying because price gains in essential food items affect almost the entire population — irrespective of their socioeconomic status. In June, India experienced a significant surge in food inflation, with the food and beverages segment seeing a staggering increase of 128 basis points compared to May, reaching a rate of 4.63 per cent. While the skyrocketing prices of vegetables have garnered much attention, it is important to note that the rise in food price inflation for June is more broad-based, indicating that a majority of food items have witnessed an increase in prices. The primary factor contributing to this rise in food inflation is the unpredictable rainfall and unfavourable weather patterns. These conditions have adversely affected agricultural productivity, leading to a shortage in the supply of various food items. As a result, the prices of essential commodities have been on the rise, impacting the overall cost of living for the population. The continued volatility in weather patterns and the potential for ongoing disruptions to agricultural production suggest that there may be no relief in sight regarding the prices of vegetables and other food items. This poses a significant challenge for consumers, particularly those from lower-income groups who are disproportionately affected by rising food prices. In light of these circumstances, it is imperative that policymakers pay close attention to the rising food inflation. Measures should be taken to address the underlying causes, such as implementing policies that promote agricultural resilience and productivity, supporting farmers in mitigating the impact of erratic weather conditions, and exploring strategies to stabilize food prices and ensure affordability for the general population. Swift and effective action is needed to alleviate the burden on consumers. Furthermore, there has hardly been any significant let-up in the core inflation, which is obtained by reducing food and fuel inflation from the overall retail inflation. The core inflation only marginally eased to 5.16 per cent in June, compared to 5.17 per cent in May. This means that on a substantial basis, there has hardly been any improvement in containing inflation, because price gain or depreciation in food and fuel segments is mostly volatile. The June surge in retail inflation, coupled with an uncertain outlook for future and unmoving core inflation, has set the stage for the RBI to continue with a hardened monetary policy stance. Apart from interventions from the government and the Central bank, one has to hope that weather patterns remain normal for keeping the supply side intact. In case things go the other way, policymakers should be ready with answers.