NEWS
Inflation breaches RBI target after 17 months
Inflation climbs to 4.38% in June compared to 3.93% in May; uncertainty over West Asia conflict and uneven monsoon casts shadow on price outlook.
Inflation climbs to 4.38% in June compared to 3.93% in May; uncertainty over West Asia conflict and uneven monsoon casts shadow on price outlook.
India’s retail inflation climbed to 4.38% in June, breaching the Reserve Bank of India’s medium-term target of 4% for the first time in 17 months.
This was led by rise in food prices, showed data released by the National Statistics Office (NSO).
In May, the consumer price index was 3.93%.
Food inflation rose in June to 5.32% from 4.78% in the preceding month.
"Inflation inched up by close to 45 basis points in June to 4.4%, mainly driven by some increase in food and fuel inflation as the impact of a revision in petrol and diesel prices played out. However, lower gold prices pulled down the increase in the headline print,” said Sakshi Gupta, principal economist at HDFC Bank.
“The uncertainty over the West Asia conflict along with an uneven monsoon continues to cast a shadow over the inflation outlook. We continue to estimate inflation to average at 5.2% for FY27, assuming an average oil price of $80 per barrel," she added.
