Staying watchful: The Hindu Editorial on inflation risks
The HinduThe concerted efforts made by the Reserve Bank and the Union government to contain inflation appear to be having some impact, albeit marginal, in slowing the pace of price gains, the latest retail inflation data show. Price gains as measured by the Consumer Price Index eased almost imperceptibly to 7.01% in June, from May’s 7.04%, with food price inflation slowing by a distinct 22 basis points to 7.75%. Year-on-year inflation in oils and fats decelerated last month by a whopping 390 basis points to 9.4%, with the index shrinking 0.7% on a sequential basis. With nine of the 12 items in the food and beverages basket, representing almost 80% of the sub index and spanning cereals, milk and meat to vegetables, sugar and spices, experiencing sequential price gains, the Government would need to maintain vigil to ward off any build-up of inflationary pressures in consumers’ kitchens. Year-on-year inflation in cereals, meat and milk all accelerated in June from May’s pace, and price gains in vegetables still remained in double digits at 17.4%.