Bucking the downward trend, the consumer price index (CPI) based headline retail inflation bounced to a four-month high of 5.08 per cent in June on the back of a sharp spike in food prices. Separately, the growth in the index of industrial production (IIP) rose to a seven-month high of 5.9 per cent in May from the downward revised figure of 5.4 per cent in the preceding month.
The data released by the National Statistical Office (NSO) on Friday showed that food inflation rose to 9.36 per cent in June from 8.69 per cent in May, driven by acceleration in the prices of cereals (8.75 per cent), fruits (7.15 per cent), and vegetables (29.32 per cent). Though the prices of pulses (16.07 per cent) decelerated compared to the preceding month, they still saw a double-digit rise in June.
Earlier, the Reserve Bank of India (RBI) governor Shaktikanta Das on Thursday said that with retail inflation still above the 4 per cent target, any talks about cuts in interest rates would be too premature.
“The last (May) CPI print was 4.7 per cent. As per various surveys, it (June CPI inflation) is likely to be close to 5 per cent. So, when we are at 5 per cent and our target is 4 per cent, I would feel it is too premature to talk about interest rate cuts,” Das said in an interview with CNBC.
He further added that the overall economic environment, globally as well as in India, is very uncertain to talk about interest rate cuts. “I would not like to give any kind of forward guidance, which would lead the market players and the stakeholders to board the wrong train,” he emphasised.
First Published: Jul 12 2024 | 6:04 PM IST
