<p>New Delhi: Retail inflation increased to four-month high of 5.08 per cent in June as food items, including vegetables became dearer, according to government data released on Friday.</p><p>The Consumer Price Index (CPI) based retail inflation was on a decline since January, before rising again in June.</p><p>The CPI-based retail inflation was 4.8 per cent in May 2024 and 4.87 per cent in June 2023.</p><p>The previous high was in February at 5.09 per cent.</p>.Veg thali gets dearer by 10% in June on onion, tomato price jump: Report.<p>Inflation in the food basket was 9.36 per cent in June, up from 8.69 per cent in May, according to the data of the National Statistical Office (NSO).</p><p>The government has tasked the Reserve Bank to ensure that the CPI inflation remains at 4 per cent with a margin of 2 per cent on either side.</p><p>The highest inflation was in vegetables at 29.32 per cent, followed by 'pulses and products' at 16.07 per cent in June on an annual basis.</p><p>'Cereals and products' and fruits too were dearer in June over the same month last year.</p>.India needs a middle-class-friendly Budget.<p>The retail inflation in rural areas was 5.66 per cent, higher than 4.39 per cent in urban India, showed the NSO data.</p><p>Commenting on the data, Aditi Nayar, Chief Economist at ICRA said the uptick in the headline CPI inflation to a four-month high in June 2024 was largely led by a rebound in the food and beverages inflation to above 8 per cent, amid a sharp sequential increase in vegetable prices.</p><p>Barring food and beverages, she said inflation across all the other sub-groups remained below the 4 per cent mark in June 2024.</p>.India inflation seen up in June due to soaring vegetable prices.<p>"We are not ruling out a stance change in October 2024 and a 25 bps rate cut each in December 2024 and February 2025, followed by an extended pause, if the food inflation outlook turns decidedly favourable on the back of a normal magnitude and favourable distribution of rainfall in the rest of the monsoon season, and there are no other shocks, either global or domestic," she said.</p><p>According to the NSO data, the highest inflation was in Odisha (7.22 per cent) and lowest in Delhi (2.18 per cent).</p><p>NSO collects the price data from selected 1,114 urban markets and 1,181 villages covering all states and UTs on a weekly roster. During June 2024, NSO collected prices from 99.7 pent villages and 98.6 per cent urban markets.</p>
<p>New Delhi: Retail inflation increased to four-month high of 5.08 per cent in June as food items, including vegetables became dearer, according to government data released on Friday.</p><p>The Consumer Price Index (CPI) based retail inflation was on a decline since January, before rising again in June.</p><p>The CPI-based retail inflation was 4.8 per cent in May 2024 and 4.87 per cent in June 2023.</p><p>The previous high was in February at 5.09 per cent.</p>.Veg thali gets dearer by 10% in June on onion, tomato price jump: Report.<p>Inflation in the food basket was 9.36 per cent in June, up from 8.69 per cent in May, according to the data of the National Statistical Office (NSO).</p><p>The government has tasked the Reserve Bank to ensure that the CPI inflation remains at 4 per cent with a margin of 2 per cent on either side.</p><p>The highest inflation was in vegetables at 29.32 per cent, followed by 'pulses and products' at 16.07 per cent in June on an annual basis.</p><p>'Cereals and products' and fruits too were dearer in June over the same month last year.</p>.India needs a middle-class-friendly Budget.<p>The retail inflation in rural areas was 5.66 per cent, higher than 4.39 per cent in urban India, showed the NSO data.</p><p>Commenting on the data, Aditi Nayar, Chief Economist at ICRA said the uptick in the headline CPI inflation to a four-month high in June 2024 was largely led by a rebound in the food and beverages inflation to above 8 per cent, amid a sharp sequential increase in vegetable prices.</p><p>Barring food and beverages, she said inflation across all the other sub-groups remained below the 4 per cent mark in June 2024.</p>.India inflation seen up in June due to soaring vegetable prices.<p>"We are not ruling out a stance change in October 2024 and a 25 bps rate cut each in December 2024 and February 2025, followed by an extended pause, if the food inflation outlook turns decidedly favourable on the back of a normal magnitude and favourable distribution of rainfall in the rest of the monsoon season, and there are no other shocks, either global or domestic," she said.</p><p>According to the NSO data, the highest inflation was in Odisha (7.22 per cent) and lowest in Delhi (2.18 per cent).</p><p>NSO collects the price data from selected 1,114 urban markets and 1,181 villages covering all states and UTs on a weekly roster. During June 2024, NSO collected prices from 99.7 pent villages and 98.6 per cent urban markets.</p>