Retail Inflation Climbs To 4.38% In June, Says Government Data

India’s retail inflation rose to 4.38 per cent (provisional) in June on a year-on-year basis, up from 3.93 per cent (final) in May, according to data released by the Ministry of Statistics and Programme Implementation on Monday.

Rural retail inflation increased to 4.74 per cent in June from 4.25 per cent in May, while urban inflation climbed to 3.92 per cent from 3.53 per cent.

Retail food inflation also rose to 5.32 per cent in June, compared with 4.78 per cent in the previous month.

According to government data, silver jewellery recorded the highest annual inflation at 133.21 per cent, followed by ginger (50.41 per cent), gold/diamond/platinum jewellery (36.82 per cent), tomatoes (31.92 per cent) and raisins (20.52 per cent).

Prices declined for potatoes (-20.34 per cent), peas (-9.67 per cent), motor cars and jeeps (-6.89 per cent), cumin (-3.75 per cent) and motorcycles and scooters (-3.49 per cent) compared with a year earlier.

Among major categories, inflation stood at 5.05 per cent for food and beverages, 4.83 per cent for pan, tobacco and intoxicants, 3.23 per cent for clothing and footwear, 1.42 per cent for health, 3.34 per cent for education, 4.31 per cent for transport, and 1.75 per cent for recreation, sports and culture.

Telangana recorded the highest retail inflation among states at 6.36 per cent, followed by Andhra Pradesh, Tamil Nadu, Odisha and Madhya Pradesh.

During the June Monetary Policy Committee meeting, RBI Governor Sanjay Malhotra said retail inflation remained below the central bank’s target despite global challenges but warned that inflation could rise in the coming months. He added that the RBI would continue to take data-driven policy decisions while closely monitoring inflation and supply-side pressures.