New Delhi, July 12:
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. The inflation number was at 7.04 per cent in May.
Surging global commodity prices due to the Russia-Ukraine war and high crude oil prices have kept inflation above RBI’s 6 per cent upper tolerance range.
RBI has raised interest rates by 90 basis points (bps) so far this year to 4.9 per cent and is set to add more in the coming months. RBI Governor Shaktikanta Das said that inflation may not fall within the top end of its mandated target band until December this year.
The Reserve Bank factors in the retail inflation print in its bi-monthly monetary policy. The government has tasked the central bank to ensure inflation remains at 4 per cent with a margin of 2 per cent on either side.
