Retail inflation for June accelerates to 5 pct; oil and rupee to blame
Analysts polled by Reuters had forecast June`s annual increase in the consumer price index at 5.30 per cent, compared with Mays 4.87 percent. Last month, the Reserve Bank of India (RBI) had raised its benchmark interest rate for the first time since 2014, by 25 basis points to 6.25 percent, citing rising inflation.
India's retail inflation for month of June has gone up to 5 per cent compared to 4.87 per cent in May 2018, according to government data released by the Central Statistics Office today. Driven by higher fuel prices and a depreciating rupee, the forecasts for June ranged from 4 per cent to 6 percent. June was the eighth straight month in which inflation was higher than the central bank`s medium-term target of 4 percent, said a Reuters report.
Analysts polled by Reuters had forecast June`s annual increase in the consumer price index at 5.30 per cent, compared with Mays 4.87 percent.
Last month, the Reserve Bank of India (RBI) had raised its benchmark interest rate for the first time since 2014, by 25 basis points to 6.25 percent, citing rising inflation.
Notably, global oil prices, which have risen more than 20 per cent this year and nearly 13 per cent in the last month have reportedly been a major factor behind higher inflation in recent months.
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