Consumer price-based inflation eases to 7.01% in June, still below comfort level 

According to the government data, core inflation plunged to 5.95%, less than 6% after a lag of three months.

Published: 13th July 2022 07:44 AM  |   Last Updated: 13th July 2022 07:44 AM   |  A+A-


Image used for representational purpose only. (File Photo | AP)

Express News Service

NEW DELHI:  Even as the consumer price-based inflation (CPI) eased marginally to 7.01% as compared with 7.04% in the previous month, it is still above the Reserve Bank of India’s tolerance level of 6% and this is the straight sixth month when retail inflation exceeded the upper band.  

CPI-based or retail inflation had hit an eight-year high in April at 7.8%.  As per the RBI’s latest forecast, average CPI inflation for July-September should be at 7.4%. The high inflation numbers have pushed the central bank to raise the interest rates twice. 

According to the government data, core inflation plunged to 5.95%, less than 6% after a lag of three months. There was a slight fall in food inflation to 7.75% in June from 7.97% in May this year, majorly on account of a sharp decline in oil and fat inflation. Food prices,  which comprise nearly half of the inflation basket, is likely to remain on the higher side owing to supply chain issues and surging crude oil price.

Commenting on the inflation numbers, Nikhil Gupta, chief economist at MOFSL group, said,” India’s June 2022 inflation came in at 7% YoY, similar to that in May 2022 and slightly lower than the consensus (our forecast of 7.3%). Lower inflation was primarily because of lower than expected food inflation (7.8% v/s our forecast of 8.8%)”. 

“Overall, there were no surprises in today’s data. Thus, no major implications for August monetary policy. We expect a 25 basis point hike next month. Lower than expected inflation for the second consecutive month, however, is a relief,” Gupta said. Gupta expects headline inflation to stay at 7% in the second quarter of FY23 and ease towards 6.5% in quarter four. 


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp