LagatarDesk: The common man has got some relief on the retail inflation front in June as compared to May. June retail inflation declined to 6.26 per cent. Whereas in May it was 6.30 percent. The biggest reason for the retail inflation to be more than 6 percent is the cost of petrol and diesel.
Inflation rate has crossed the limits of RBI
Significantly, the inflation rate in June was more than 6 percent. RBI had fixed 2 to 6 per cent. The Reserve Bank had set a target of 4 per cent for retail inflation. In which a fall of 2 percent can be further accelerated. This is the second consecutive month that retail inflation has crossed the RBI’s upper circuit of 6 per cent. Prior to that, retail inflation was in the range of 6 per cent for five consecutive months.
Food inflation rises
Food inflation rose to 5.15 per cent in June. It was 5.01 per cent in May. Food and drink have become expensive in June as compared to May. At the same time, India Industrial Output (IIP) has registered a growth of 29.27 percent on an annual basis in May. This information has been shared by the Ministry of Statistics and Program Implementation (MoSPI).
Inflation forecast for the current financial year
RBI has projected retail inflation at 5.1 per cent for the financial year 2021-22. According to it, retail inflation has been estimated at 5.2 percent in the June quarter, 5.4 percent in the September quarter, 4.7 percent in the December quarter and 5.3 percent in the March quarter.
This data is necessary for monetary policy
Retail inflation rate data is very important for the policy making of RBI. Keeping this in mind, the decision of monetary policy has been taken. RBI has kept the policy rate stable for six months. At present, the repo rate is 4 percent and the reverse repo rate is 3.35 percent.
