Consumer Price Index (CPI)-based inflation for June stood at 6.09 per cent, sl
Consumer Price Index (CPI)-based inflation for June stood at 6.09 per cent, slightly above the Reserve Bank of India’s target band of 4 per cent (with a margin of +/- 2 per cent), showed the official data released on Monday. This has raised expectations of another rate cut.
The National Statistical Office (NSO) released the headline CPI numbers after a gap of two months. It had cited difficulty in data collection (due to the lockdown) for the absence of data for April and May. However, it had released the Consumer Food Price Index-based inflation data for all months.
CFPI for June came in at 7.87 per cent, compared to 9.20 per cent in May, after the food and agriculture supply chain opened up following Unlock 1.0. In June 2019, the CPI stood at 3.18 per cent while food inflation came in at 2.25 per cent. The last time headline CPI inflation breached the MPC’s inflation band was in February 2020, when it came in at 6.58 per cent. For March, it stood at 5.84 per cent.
The rise in headline CPI…