New Delhi: India's retail inflation, measured by the Consumer Price Index (CPI), increased to 4.38 per cent in June, up from 3.93 percent in May, according to government data released on Monday.
Food prices push inflation higher
The main reason for the rise was higher food prices. Food inflation increased to 5.32 per cent in June from 4.78 per cent in May, indicating that essential food items became costlier during the month.
Still within RBI's target
The Reserve Bank of India (RBI) aims to keep retail inflation at 4 per cent, with a tolerance band of 2 percentage points on either side. This means inflation can remain between 2 per cent and 6 per cent without breaching the target.
What it means?
Although inflation moved higher in June, it remained within the RBI's comfort range. The latest data suggests that rising food prices continue to be the biggest driver of consumer inflation, while overall price pressures remain under control.
The inflation trend will remain important for future interest rate decisions and household spending.
