Consumer price inflation rose in June after three consecutive months of moderation due to a spike in vegetable prices halting a disinflationary trend underway in the economy
Headline inflation measured by year-on-year changes in the CPI edged up to 5.1% in June from 4.8% in May, RBI officials wrote in the ‘State of the Economy’ article
The 28 basis points (bps) rise in inflation came from a positive momentum of 133 bps, which more than offset a favourable base effect of 106 bps
Vegetable prices continued to record double-digit rise YoY.
Edible oils and fats recorded a lower rate of deflation.Fuel and light category deflation remained unchanged at -3.7% in June.
While growth in kerosene and electricity prices moderated, deflation in LPG prices continued.
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