- Government will release important data of June retail inflation on Tuesday
- Retail inflation has remained above 6 per cent since January this year
- Consumer Price Index based retail inflation stood at 7.04 percent in May
Business News Updates: The government will release key data on June retail inflation on Tuesday, which the Reserve Bank will include in its next bi-monthly monetary policy to be announced in early August.
Retail inflation has remained above 6 per cent since January this year, forcing the central bank to hike back-to-back policy rates (repo).
Consumer price index (CPI)-based retail inflation, which stood at 7.04 per cent in May, is unlikely to reach RBI’s comfort zone of below 6 per cent anytime soon amid higher commodity prices due to the Russia-Ukraine war.
The data on CPI is to be released by the National Statistical Office (NSO), Ministry of Statistics and Program Implementation (MoSPI) at 5.30 pm.
Last month, the Reserve Bank in its bi-monthly monetary policy review hiked the benchmark repo rate – at which it lends short-term money to banks – by 0.50 per cent to 4.90 per cent to rein in price hikes. This followed an off-cycle meeting on May 4, when the central bank cut the repo rate to 0.
Reserve Bank of India Governor Shaktikanta Das, while speaking at the Kautilya Economic Conference on Saturday, expressed confidence that the prices would gradually improve in the second half of the current financial year.
He also said that the central bank will continue to take monetary measures to control inflation with a view to achieving strong and sustainable growth.
The Governor said that price stability is important for maintaining macroeconomic and financial stability and the central bank will take measures to maintain and promote macroeconomic stability.
The Reserve Bank, which incorporates the CPI in its monetary policy, in June raised the inflation forecast for the current fiscal to 6.7 per cent from its previous estimate of 5.7 per cent.
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