India’s retail inflation tapered down slightly to 6.26 per cent in the month of June 2021, compared to the month-ago period, when it was at 6.30 per cent in May 2021. However it was still over and above the Reserve Bank of India’s (RBI) threshold of 6 per cent, according to the data issued by the Ministry of Statistics & Programme Implementation on Monday.
This is the second time in six months that the Consumer Price Index (CPI) data has crossed the RBI’s tolerance margin of 6 per cent.
The RBI has been directed by the Government to maintain retail inflation at the level of 4 per cent, however with a 2 per cent margin on either sides, till March 2026.
Meanwhile, the Consumer Food Price Index (CFPI) went up slightly to reach 5.15 per cent in June 2021 over 5.01 per cent in May 2021. CFPI is also called food inflation.
The marginal increase in food inflation was owing to sharp rise in prices of oils and fats, which recorded a 34.7 per cent jump in June 2021 over June 2020.
Price of non alcoholic beverages also soared by 14.7 per cent and prices of pulses too rose by 10 per cent in June 2021 over the year ago period.