The year-on-year inflation rate based on the all-India Consumer Price Index (CPI) number is registered at 5.08% (provisional) for the month of June, data from the Ministry of Statistics & Programme Implementation (MoSPI) said.
The retail inflation took a departure from the moderation it witnessed in the past months pushed by rising food prices.
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The corresponding inflation rates for rural and urban areas are 5.66% and 4.39%, respectively. The inflation in the food basket was 9.36% in June, up from 8.69% in May.
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As per the MoSPI data, retail inflation for cereal and products, meat and fish, egg, milk and products, oils and fats, fruits, and vegetables in particular, pulses and products, sugar, spices, prepared snacks, and sweets rose month-on-month.
Notably, the food prices have been accelerating at more than 8% year-on-year since November 2023.
Vegetable prices rose 29.32% in June against 27.33% in the previous month, as extreme heat and heavy floods in India’s northern states disrupted agricultural production.
The inflation rate for cereals was 8.75% in June compared to 8.69% in the previous month, while that of pulses eased to 16.07% from 17.14%.
The government data also released the Index of Industrial Production (IIP) saying it grew 5.9% in May this year, mainly due to good show by mining and power sectors.
The factory output measured in terms of the IIP witnessed a growth of 5.7 % in May 2023.
The manufacturing sector’s output slowed to 4.6% in May 2024 against 6.3% in the year-ago month.
Further in May, mining production rose 6.6%, and power output increased 13.7%.
During April-May this fiscal, the IIP grew 5.4% compared to 5.1% in the year-ago period.
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