Vegetable price surge spurs retail inflation to 4.81% in June, breaks downward trajectory

In June, higher food prices drove inflation, with the Consumer Food Price Index recording a month-on-month increase of 2.5 per cent. Leading this surge were vegetable prices, which soared by 12.2 per cent compared to May, despite a year-on-year inflation rate of -0.93 per cent, indicating a decline in vegetable prices compared to June 2022.

Other food items that experienced notable month-on-month price increases included meat and fish (3.8 per cent), pulses (3.4 per cent), eggs (5.5 per cent), and spices (2.3 per cent). Overall, food inflation surged to 4.49 per cent from 2.96 per cent in May.

The rise in June inflation was also influenced by the waning favourable base effect, which had contributed to a 25-month low in CPI inflation in May.

Price momentum for non-food items remained subdued. The clothing and footwear index increased by 0.4 per cent month-on-month, while the miscellaneous category, comprising certain services and household goods, saw a 0.3 per cent increase. The fuel and light category recorded a minimal increase of 0.1 per cent, while the housing index declined sequentially for the first time in six months.

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