Retail Inflation Data For June 2023 : After four months of continuous decline, the inflation rate figures have once again taken a U-turn. In June 2023, the retail inflation rate rose again due to a sharp rise in food prices. Retail inflation rate was 4.81 percent in June while retail inflation rate was 4.31 percent in May 2023.
Expensive food items
According to the statistics released by the Ministry of Statistics, the inflation rate of food items has increased drastically. Food inflation rose to 4.49 percent in June from 2.96 percent in May 2023. The rate of food inflation in June 2022 was 7.75.
Pulses and vegetables became expensive
The main reason for the increase in the inflation rate in the month of June is the price of arhar and other pulses. Inflation of pulses was 10.53 per cent in June, while it was 6.56 per cent in May. Inflation rate of greens and vegetables stood at -0.93 percent in June. While in May it was -8.18 percent. Spice inflation rose to 19.19 percent from 17.90 percent in May. Prices of milk and its allied products remained at 8.56 per cent as against 8.91 per cent in May. The inflation rate of food grains and related products stood at 12.71 percent, as against 12.65 percent in May. However, the inflation rate of oil and fats declined to -18.12 percent, from -16.01 percent in May. The inflation rate for sugar was 3 percent, as against 2.51 percent last month.
Shock the hope of cheap loans!
The retail inflation figure for June stood at 4.81 percent, meaning the RBI’s tolerance band is between 2 to 6 percent. But this year due to heavy rainfall in many states of the country, the production of kharif crops and vegetables is likely to be adversely affected. There is a threat of El Nino. In this situation, there is a danger of inflation. RBI Governor Shaktikanta Das himself has said that the fight against inflation is not over yet. In this scenario, on August 10, 2023, hopes of relief from the RBI against a cut in interest rates or policy rates may be dashed.
It is worth mentioning that the tomatoes have turned red for some time now. Tomatoes are being sold at a price of more than 200 rupees per kg in the country. In some places including the capital Delhi, the price of tomato has crossed 260 rupees per kg. Which has had a huge impact on these figures.
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