Food prices drive retail inflation to 3-month high of 4.81%
Hindustan TimesConsumers will feel the pain of high food at least until September, analysts said on Wednesday, as the knock-on effects of last year’s lower output of key staples and torrential rains this month hammered household budgets. Read here: Retail inflation in June reaches a 3-month high of 4.81% on rising food prices Food inflation, as measured by the consumer food price index, leapt to 4.49% in June, compared to a 2.96% climb in the previous month, official data showed on Wednesday. Untamed food prices could see a rise in retail inflation from the Reserve Bank of India ’s target of 4% again. Read here: Food prices drive retail inflation to three-month high of 4.81% Hailstorm in March, April and May destroyed large swathes of tomato crop in Maharashtra, a major supplier during the monsoon months, said Sunil Chavan, Maharashtra’s agriculture commissioner. Read here: As rains, landslides hit supply, tomato rates touch ₹250 per kg in Chandigarh The Reserve Bank of India, in its June monetary policy statement, has projected that inflation in the July-September quarter will be 5.2%, but said there could be upside risks to inflation from food prices if weather turns out to be unfavourable.