CPI Inflation in June Rises To 4-Month High of 5.08%, IIP Growth Jumps To 5.9%

Retail Inflation in June 2024: Retail Inflation in June 2024: India’s CPI inflation in June 2024 stood at 5.08 per cent on the back of higher food prices, according to official data released on Friday, July 12. The 5.08% retail inflation in June is the highest in four months. Meanwhile, India’s IIP growth rose to 5.9 per cent in May 2024 as against 5 per cent in the previous month of April.

In the previous month of May 2024, India’s retail inflation had stood at 4.75%. The last high in inflation was recorded in February at 5.09 per cent. In June 2023, the CPI inflation had stood at 4.87 per cent.

Inflation in the food basket rose to 9.36 per cent in June, compared with 8.69 per cent in May, according to the data released by the National Statistical Office (NSO). In June 2023, it had stood at 4.55.

Upasna Bhardwaj, chief economist at Kotak Mahindra Bank, said, “The CPI inflation came marginally higher than our expectations. While the food inflation risks will continue to dominate in the near term, we expect the better sowing patterns and spatial distribution of rains to eventually ease the price pressures beyond these volatile months.”

The RBI will be in no hurry to ease monetary policy given the headroom from robust growth in the backdrop of near term inflation risks, Bhardwaj added.