India’s retail inflation, based on the new Consumer Price Index (CPI) series, reached 4.38% in June this year compared to the same period last year, as per data released by the Ministry of Statistics. Silver jewelry prices surged by 133.21%, while gold jewelry prices rose by 36.82% during the month.
Food inflation in June was at 5.32%, with potato prices dropping by (-) 20.34% and peas becoming cheaper by (-) 9.67%. Conversely, tomato prices increased by 31.82% and ginger costs surged by 50.41%. Cars saw a 6.89% price decline, and the two-wheeler auto segment experienced a 3.49% fall in prices.
Housing inflation for the month was at 2.10%. Sequentially, the inflation rate in June rose from 3.93% in May. The CPI inflation remains within the RBI’s safe zone of 4%, with a tolerance range of 2% to 6%, aligning with the RBI’s monetary policy objectives.
The RBI has forecasted headline Consumer Price Index (CPI) inflation for FY27 at 5.1%, up from the previous estimate of 4.6%. The quarterly inflation trajectory for FY27 is projected as: Q1: 4.2%, Q2: 5.1%, Q3: 5.9%, and Q4: 5.4%. These projections consider risks from global supply chain disruptions and volatile commodity prices due to geopolitical tensions in West Asia.
