Consumer price inflation rises further to 5.4% in June

13 July 2015

Consumer price inflation in the country based on the all-India consumer price index (CPI) for June 2015 rose to 5.40 per cent from 5.01 per cent in the previous month in the wake of a substantial increase in the index of food articles to 5.48 per cent from 4.8 per cent in May.

The general indices (provisional) for June 2015 for rural and urban areas showed a divergent trend at 6.07 per cent and 4.55 per cent, respectively.

Consumer price index-based inflation stood at 6.77 per cent in June 2014.

The uptick in consumer price inflation has been showing from the beginning of the current financial year, rising from 4.87 per cent in April to 5.1 per cent in May and further to 5.40 per cent in June.

The Reserve Bank of India, which tracks retail inflation as a benchmark for its monetary policy, had said earlier last month that price rise was still a worry for the central bank.

RBI had expected inflation to rise to 6 per cent by January 2016. But, at the current trend, inflation could well breach the RBI ceiling.

The overall food inflation increased to 5.48 per cent in June 2015 from 4.8 per cent during May. Food inflation stood at 7.21 per cent in June 2014.

The inflation for fruit and vegetables was 5.88 per cent and 4.64 per cent, respectively, in June 2015. 

Among others, milk and its products were costlier by 7.88 per cent in June 2015 over the same month last year.

Prices of protein-rich items such as 'meat and fish' rose by 7.15 per cent, while spices turned costlier by 9.44 per cent in the month.

Prices of prepared snacks and meals rose by 9.08 per cent, clothing and footwear category by 7.29 per cent and fuel and light by 7.34 per cent.

Of the other categories, oils and fats prices rose by 3.35 per cent, cereals and products by 2.82 per cent, while that of egg declined by 5.25  per cent in June 2015.

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