RBI Bulletin: Hike in retail inflation due to food prices has halted overall disinflation process

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Key Points

It said that inflation due to rising food prices has derailed the disinflation process...

"Consumer price inflation ticked up in June 2024 after three consecutive months of moderation as a broad flare-up in the vegetable prices halted the overall disinflation that had been underway," the RBI said...

According to the statistics ministry data, retail inflation measured by the consumer price index (CPI) increased to 5.08% year-on-year last month, following a decline to a 12-month low of 4.75% in May..

In June, food inflation gauged by the consumer food price index (CFPI) escalated to 9.36% year-on-year, surpassing the 8.69% rise in May and the 8.70% in April...

The higher food inflation in June was because of the rise in prices of items such as cereals, vegetables, milk, and milk products...

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