Digital Scoop India Official Platform of Digital Scoop India Featuring Latest & Best News #Articles #Bytes #Entertainment #DigitalScoopMagazine
Related Articles
According to recently released government data, retail inflation in India climbed to 5.08% in June, up from 4.8% in May 2024 and 4.87% in June 2023. The increase was primarily attributed to higher prices of essential kitchen items, highlighting ongoing economic challenges.
The National Statistical Office (NSO) reported that inflation within the food basket surged to 9.36% in June, marking a notable rise from 8.69% recorded in May. This rise in food prices encompassed various categories including cereals, meat, fish, eggs, dairy products, oils, fats, fruits, vegetables, pulses, sugar, spices, and prepared snacks and sweets.
The data, collected from 1,114 urban markets and 1,181 villages across all states and union territories through personal visits by field staff, underscores the widespread impact of inflation on household budgets nationwide.
The Reserve Bank of India (RBI), mandated by the government to maintain CPI inflation at 4% with a tolerance margin of 2% on either side, faces critical decisions amid these inflationary pressures. The RBI had earlier projected CPI inflation for 2024-25 at 4.5%, with quarterly estimates of 4.9% in Q1, 3.8% in Q2, 4.6% in Q3, and 4.5% in Q4.
Retail inflation trends significantly influence the RBI’s bi-monthly monetary policy decisions. Since May 2022, the RBI has implemented multiple repo rate hikes totaling 250 basis points, aiming to curb inflationary pressures by moderating demand in the economy.
The rising inflation rate poses challenges for policymakers in balancing economic growth with price stability. As the RBI continues to monitor economic indicators closely, including inflationary trends, the forthcoming policy decisions will play a crucial role in shaping India’s economic trajectory in the coming months.
Sources By Agencies
