Consumer pricing index (CPI)-based retail inflation dropped to 7.01 percent in June of this year from 7.04 percent the month before. According to the Ministry of Statistics and Program Implementation, lower prices in the “Food & Beverages” segment were a major factor in the slight decrease in inflation.
Inflation in the food basket in June 2022 was 7.56 percent, down from 7.84 percent in May of this year. Vegetable prices increased by 18.26% in May 2022, although they only increased by 17.37% in the reporting month.
Inflation has remained over the RBI’s upper tolerance level of 6% due to rising global commodity prices brought on by the Russia-Ukraine war and high crude oil prices.
For a five-year term ending in March 2026, the government has ordered the central bank to keep retail inflation at 4% with a 2% tolerance on each side.
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