New Delhi: Retail inflation soared to 5.08 per cent in June, marking a four-month high, according to government data released on July 12, 2024. This rise from 4.80 per cent in May underscores mounting inflationary pressures in the economy.Year-on-year inflation rate based on All India Consumer Price Index (CPI) number is 5.08 per cent(Provisional) for the month of June, 2024. Corresponding inflation rate for rural and urban is 5.66 per cent and 4.39 per cent, respectively, the Ministry of Statistics & Programme Implementation stated.Food, rural inflation surgeFood inflation surged to 9.55 per cent in June, up from 8.69 per cent in May and significantly higher than the 4.55 per cent recorded in June 2023. Rural inflation also climbed, reaching 5.67 per cent in June from 5.34 per cent in May and 4.78 per cent in June of the previous year.Urban inflation shows slight decreaseIn contrast, urban inflation experienced a slight decline, easing to 4.39 per cent in June from 4.21 per cent in May, though it remained lower than the 4.96% seen in June 2023.Industrial production shows growthIndias Index of Industrial Production (IIP) demonstrated growth, increasing by 5.9 per cent in May compared to 5 per cent in April, as reported by the Ministry of Statistics and Programme Implementation (MoSPI).“The CPI inflation came marginally higher than our expectations. While food inflation risks will continue to dominate in the near term, we expect better sowing patterns and spatial distribution of rains to eventually ease the price pressures beyond these volatile months. Having said that, the Central Bank will be in no hurry to ease monetary policy given the headroom from robust growth in the backdrop of near-term inflation risks, Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank told India Today.
