India’s retail inflation fell to 2.10% in June, the lowest year-on-year rise in consumer prices since January 2019, according to official data on Monday.
Core inflation, measured by the all-India Consumer Price Index (CPI), recorded a sharp fall of 72 basis points from May’s 2.82%.
This fall marks the longest period in nearly six years when inflation has remained below the Reserve Bank of India’s medium-term target of 4%. The central bank has not allowed inflation to rise below 2% or above 6% for three consecutive quarters.
Food inflation has slipped into negative territory, with the Consumer Food Price Index (CFPI) recording -1.06% in June, as against a positive 0.99% in May.
In rural areas, gross inflation declined to 1.72% in June from 2.59% in May, while food inflation eased to -0.92% from 0.95%.
Gross inflation in urban areas stood at 2.56% in June from 3.12% in May. Food inflation in urban areas declined to -1.22% from 1.01% in May.
This June figure is also the lowest food inflation since January 2019.
However, housing inflation rose to 3.24% in June from 3.16% in May and education inflation rose to 4.37% in June from 4.12% in the previous month. Health inflation rose to 4.43% from 4.34%.
Meanwhile, wholesale price inflation (WPI) declined to (-) 0.13% in June mainly due to fall in prices of food articles, mineral oils, base metals and crude petroleum.
The RBI mainly takes into account retail inflation while formulating monetary policy.
Amid declining inflation, the RBI last month cut benchmark policy interest rates by a massive 0.5% to 5.50%.
