India's retail inflation eases to 7.01 percent in June
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.
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
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