India's retail inflation touches 4.38 per cent in June as silver, gold prices jump
New Delhi, July 13
India's retail inflation, based on the new Consumer Price Index series, was recorded at 4.38 per cent in June this year compared to the same month of the previous year, according to data released by the Ministry of Statistics on Monday.
The commodities that posted the highest inflation during the month were silver jewellery, which saw a 133.21 per cent jump in prices and gold jewellery, which clocked a 36.82 per cent increase in prices.
Overall food inflation in June stood at 5.32 per cent as the prices of potato plummeted by as much as (-) 20.34 per cent during the month while peas turned cheaper by (-) 9.67 per cent. However, tomato prices shot up by 31.82 per cent during the month while the cost of ginger surged by 50.41 per cent, the figures showed.
Among the other goods which turned cheaper during June were cars, which registered a 6.89 per cent decline in prices and the two-wheeler auto segment which saw a 3.49 per cent fall in prices.
The year-on-year housing inflation rate for the month stood at 2.10 per cent.
Sequentially, the inflation rate in June has moved up from 3.93 per cent in the previous month of May.
The CPI inflation is well within the RBI safe zone, which has 4 per cent as the midpoint. The tolerance zone of the RBI ranges from 2 per cent to 6 per cent. The RBI's monetary policy aims to keep inflation within this zone as it balances its objective of promoting economic growth with stability.
The RBI has projected headline Consumer Price Index (CPI) inflation for FY27 at 5.1 per cent, up from its earlier estimate of 4.6 per cent.
The quarterly inflation trajectory for FY27 is projected as: Q1: 4.2 per cent, Q2: 5.1 per cent, Q3: 5.9 per cent, and Q4: 5.4 per cent.
These projections reflect increased risks from global supply chain disruptions and volatile commodity prices driven by geopolitical tensions in West Asia.
— IANS
Reader Comments
Silver jewellery up 133%?! I was planning to buy some for my sister's wedding next month. 🥲 Gold is already out of budget for most middle-class families. At least cars and two-wheelers are cheaper, but that doesn't help when essentials are burning a hole in the pocket. The RBI's 4% target feels like a distant dream for the common man.
I see the inflation is "well within RBI safe zone" but my salary hike this year was only 5%. With projected inflation hitting 5.9% in Q3, my real income is actually shrinking. 😐 The government needs to focus on supply chain issues urgently. Geopolitical tensions shouldn't be an excuse forever. Middle-class savings are getting wiped out!
Good to see potato prices down by 20% but that's cold comfort when tomato and ginger have doubled. 🧐 The housing inflation at 2.10% seems low but try finding a decent rental in any metro city! My rent went up 15% this year alone. The CPI basket needs to better reflect what urban Indians actually spend on.
The silver price jump (133%) is shocking! Even for traditional Indian weddings, families are now reconsidering silver gifts. 😔 And the gold increase (36.82%) means many will postpone purchases. On a positive note, car prices dropping is good for first-time buyers. But the overall picture - RBI projecting 5.1% for FY27 - shows we're in for a bumpy ride. Hope the monsoon is kind to our food prices!
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