CPI surges to eight-month high of 3.18% in June

15 Jul 2019 Evaluate

India’s retail inflation based on Consumer Price Index (CPI) has continued its increasing trend for fifth straight month and hit an eight-month high of 3.18% in the month of June 2019, on higher food prices such as grains, pulses and protein-rich items meat and fish. It was up from 3.05% in the previous month. Besides, in the year-ago period, the retail inflation was at 4.92% in June 2018. Though, in inflation stayed below the RBI’s medium-term target of 4% for an eleventh straight month. Moreover, the overall food inflation based on consumer food price index (CFPI) rose to 2.17% in June as against 1.83% in the previous month.

As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the CPI (Rural, Urban, Combined) on Base2012=100 for June 2019, stood at 2.21%, 4.33% and 3.18%, respectively, compared to 4.93%, 4.85% and 4.92%, respectively in June 2018. The index value of CPI for combined stood at 142.9. The data also showed that CFPI for all India Rural and Urban for June 2019 stood at 0.43% and 5.56%, respectively, compared to 3.66% and 1.56%, respectively in June 2018. The index value of CFPI for combined stood at 141.0 for the month of June.

The inflation for protein-rich 'meat and fish' category quickened to 9.01% during the month as against 8.12% month earlier. For the 'pulses and products' category, the rate of price rise was sharply higher at 5.68% against 2.13%, while the inflation in the 'cereals and products' basket rose to 1.31% from 1.21% in May this year. However, prices of fruits continued to show deflationary trend with inflation standing at (-) 4.18%, while inflation in vegetables eased to 4.66%. For the 'fuel and light' category, retail inflation in June slowed a tad at 2.32%.