Retail inflation rose to 5.4% in June, highest in 8 months

New Delhi, July 13: Retail inflation rose to eight-month high of 5.4% in June on costlier food items, fuel, housing, clothing and footwear even as prices of sugar and confectionery items eased during the month.

The retail inflation measured in terms of Consumer Price Index (CPI) was at 5.01% in May. The rate of price rise was at 6.77% in June last year.

Prices of pulses rose by 22.24% in June over the same month last year, as per the data released by Central Statistics Office (CSO) today.

The overall food inflation also increased to 5.48% during the month under review, from 4.8% in May.

However, it was lower than food inflation of 7.21% in June last year.

The inflation for fruit and vegetables was 3.51% and 5.37%, respectively, in June.

Among others, milk and its products were costlier by 7.18% in June over the same month last year.

Prices of protein-rich items such as ‘meat and fish’ rose by 6.99%, while spices turned costlier by 9.71% in the month.

Prices of prepared snacks and meals rose by 7.84%, clothing and footwear category by 6.34%, housing by 4.48% and fuel and light by 5.92%.

Among other categories, oils and fats prices rose by 3.06%, cereals and products by 1.98%, while that of egg rose by 5.09% in June.

The prices of sugar and confectionery items fell by 8.55% in June compared to same month last year.

The Reserve Bank, which tracks retail inflation as a benchmark for its monetary policy, said earlier last month that price rise was still a worry for the central bank. RBI expects inflation to rise to 6% by January 2016.

The central bank is scheduled to announce third bi-monthly monetary policy on August 4.