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India's CPI eases to 7.31% in June

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Staff writer ▼ | July 16, 2014
India's retail inflation based on Consumer Price Index (CPI) declined to 7.31 percent in June from 8. 28 percent in May, helped by moderation in food prices, government data showed.
India street market
India street marketIndia's retail inflation based on Consumer Price Index (CPI) declined to 7.31 percent in June from 8. 28 percent in May, helped by moderation in food prices, government data showed.


Earlier, figures showed that wholesale prices rose 5.43 percent in June, the slowest pace in four months.

Retail food inflation eased to 7.97 percent in June. For rural areas retail food inflation was recorded at 8.68 percent, while for urban areas it stood at 6.57 percent, according to data released by the Central Statistics Office.

Adding to inflationary worries are prospects of a first drought in five years and turmoil in Iraq, which have increased the risk of a run-up in food and fuel prices.

Weak rainfall in India since the monsoon season started last month has already driven up prices of basic food items, such as milk, potatoes and tomatoes, and could further delay a decision by the Reserve Bank of India to cut interest rates and ease the flow of credit to the economy.


 

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