Retail inflation again above 5% as prices of vegetables, pulses, cereals rise

New Delhi| Retail inflation once again rose above five percent in June due to rising prices of vegetables, pulses, fruits and grains. Retail price-based inflation rate stood at 5.08 percent in June. It reached above five percent for the first time since February. Retail inflation was 4.80 percent in May, 4.83 percent in April and 4.85 percent in March.

Retail inflation for vegetables stood at 29.32 percent in June, according to an official data released on Friday. Similarly, prices of pulses and their products increased by 16.07 percent compared to June last year. Grain prices rose by 8.75 percent and fruit prices by 7.15 percent. At the same time, the inflation rate for oil and fatty products was minus 2.68 percent. Vegetable crop failure due to extreme heat in different parts of the country had an impact on retail inflation. Government has set Reserve Bank target of keeping inflation at four percent in medium term. However, its scope has been fixed between two percent and six percent.