Inflation grows beyond RBI’s upper margin, makes corona battle tougher  

India’s retail inflation, grew 6.09 % in the month of June, according to the latest data released by the Ministry of Statistics & Programme Implementation (MoSPI).

1. India's retail inflation grew 6.09% in the month of June

The government had not released the headline retail inflation data in April and May. However, in April, it had revised the CPI data for the month of March to 5.84 %from 5.91 %.

2. The government had not released the retail inflation data in April

The retail inflation has grown beyond the Reserve Bank of India’s (RBI) upper margin of 6%. The government has mandated the Indian central bank to keep inflation within the range of 4 per cent with a margin of 2% on either side.

3. The retail inflation has grown beyong the RBI's upper margin of 6 %

The Consumer Food Price Index (CFPI) or the inflation in the food basket grew 7.87 % in the month of June, while the CFPI for May was revised to 9.20%, the data showed.

4. The inflation in the food basket grew 7.87 % in the month of June

A break-up of the inflation data showed that higher prices of food articles and of transportation contributed to the elevated inflation. Perishables like fruits and vegetables, however, showed sharply lower inflation. Core inflation categories also saw low inflation, reflecting weak demand conditions.

5.Higher prices of of food articles and transportation contributed to the elevated inflation

The data collected, however, did not meet the adequacy criteria for generating robust estimates of CPIs at the state-level, it added.

The retail inflation based on Consumer Prince Index was 3.18% in June 2019.

6. The retail inflation in June 2019 was 3.18 %

The government had released truncated CPI data for April and May in the backdrop of the lockdown to contain COVID-19 pandemic.

7. The government had released truncated data for April and May

The data shows a steep rise in food items amid the coronavirus pandemic, the price on pulses, meat and fish and vegetables has been on a rise.

8. The prices of food items have been on a steep rise.

The government did not adhere to the guidelines of the Reserve Bank of India as the inflation has crossed the upper limit of 6 %. The economy has been on a decline due to the lockdown.

9. The lockdown has badly hampered the economy

The rise in petroleum prices has also attributed to the spike in the food prices and has added to the woes of the common man already struggling with the coronavirus crisis.

10 The rise in petroleum prices has also attributed to increased retail prices