India's retail inflation eases to 7.01 percent in June

Tags: Economy/Finance

Retail inflation based on the Consumer Price Index (CPI) declined to 7.01 per cent in June this year from 7.04 per cent in the previous month.

Important facts

• This is mainly on account of marginal reduction in prices of vegetables and pulses, though it still remained above the Reserve Bank's level for the sixth consecutive month.

• According to data released by the National Statistical Office (NSO) Consumer Price Index (CPI) based inflation stood at 6.26 per cent in June 2021. 

• The increase in prices in rural India was faster in the month of June as compared to the urban parts of the country.

• CPI-based inflation for rural areas rose marginally to 7.09 per cent in June from 7.08 per cent in May.

• Rural inflation was 6.16 per cent in June 2021.

• Urban inflation declined to 6.92 per cent in June 2022 from 7.08 per cent in May 2022.

• Inflation in the food basket in June 2022 was 7.75 per cent, compared to 7.97 per cent in the previous month. 

• The inflation figure in vegetables eased to 17.37 percent during June from 18.26 percent in May 2022.

• The central bank has been asked to ensure that inflation remains at 4% with a margin of 2% on either side.

• What is CPI based inflation or retail inflation?

• CPI (Consumer Price Index) monitors retail prices at a certain level for price movement of a particular commodity, goods and services at rural, urban and all India levels.

• The change in the price index over a period of time is known as CPI-based inflation, or retail inflation.

• CPI formula - (Price of basket in current period / Price of basket in base period) x 100

Kindly see also 14 June 2022 post