World Economy

India Retail Inflation at 22-Month High

India Retail Inflation at 22-Month HighIndia Retail Inflation at 22-Month High

Retail inflation in India inched up to a 22-month high level of 5.77% in June on increase in food prices, including vegetables and cereals, PTI reported. With inflation remaining at an elevated level and above the 5% mark, Reserve Bank’s next monetary policy review in August would be keenly watched as inflation targeting has been the main objective of the apex bank. The retail inflation measured on consumer price index was marginally lower at 5.76% in the previous month, while it was 5.40% in June last year. In August 2014, consumer inflation was at 7.8%. The overall food inflation moved up to 7.79% in June from 7.47% in the previous month, a government data showed on Tuesday. Inflation in vegetables was up at 14.74% against 10.77% in May and in cereals and related products was 3.07% compared to 2.59% in the previous month. However, the rate of price rise in pulses declined to 26.86% during the month while it stood at 31.57% in May.