18 July 2024 Punjab Khabarnama : A broad flare-up in vegetables prices has halted the overall disinflation process, The Reserve Bank of India noted in its Monthly Bulletin released on July 18.
“Every silver lining has a cloud. Data for June 2024 showed that consumer price inflation ticked up after three consecutive months of moderation as a broad flare-up in vegetables prices halted the overall disinflation that had been underway,” the RBI Bulletin said.
In June, India’s retail inflation rose to four-month high of 5.08 percent compared to 4.75 percent in the month ago period, as food inflation galloped to 9.4 percent given the impact of heatwave on vegetables prices.
Inflation had dipped to a 12-month low of 4.75 percent in the month of May, despite food inflation hovering around 8.7 percent.
The monthly State of the Economy article includes Deputy Governor Michael Patra – one of the three RBI representatives on the Monetary Policy Committee (MPC) – as one of its co-authors. The views expressed in the article do not reflect the central bank’s official stance, RBI said in a release.