June Retail Inflation At 7.01%, Above RBI's Limit For Sixth Straight Month
Retail inflation, based on the consumer price index (CPI), stood at 7.01 per cent in June, above Reserve Bank of India’s (RBI’s) tolerance limit for the sixth straight month, government data showed on Tuesday. Inflation stood at 7.04 % in May.
Inflation has remained above the RBI’s 6 percent upper limit due to a combination of high commodity prices and Russia-Ukraine conflict.
According to the National Statistical Office data, the inflation rate in June 2022 was 7.75%, compared 7.97% the month before.
The RBI raised its interest rate by 90 basis points this year, to 4.9%. It is expected to increase more over the next few months. Shaktikanta das, the Governor of RBI said inflation might not reach its target level until December.
The Reserve Bank includes retail inflation in its bimonthly monetary policy. The central bank has been given the task by government to keep inflation below 4% with a margin equal to 2%.