New Delhi:
Retail inflation, based on the consumer price index (CPI), stood at 7.01 percent in June, above the Reserve Bank of India (RBI) tolerance limit for the sixth straight month, government data showed on Tuesday. Inflation was 7.04 percent in May.
Rising global commodity prices due to the Russia-Ukraine war and high crude oil prices have kept inflation above the upper bound of the RBI’s 6 percent tolerance margin.
In June 2022, food basket inflation was 7.75 percent, compared to 7.97 percent in the previous month, according to data from the National Statistical Office (NSO).
RBI has raised interest rates by 90 basis points (bps) so far this year to 4.9 percent and will add more in the coming months. RBI Governor Shaktikanta Das said inflation may not fall within the upper limit of his mandatory target band until December this year.
The Reserve Bank takes into account inflationary pressures in the retail sector in its bimonthly monetary policy. The government has instructed the central bank to ensure inflation stays at 4 percent with a 2 percent margin on both sides.
Another set of government data showed India’s industrial output rose 19.6 percent in May this year, up from 27.6 percent in May 2021.
Manufacturing output, which makes up 77.63 percent of the industrial production index, grew 20.6 percent in May 2022.
In May of this year, mining production increased by 10.9 percent and power generation by 23.5 percent.