NEW DELHI: Retail inflation based on consumer price index (CPI) inched up for the fifth consecutive month to 4.4% in June from 3.9% in May, crossing the 4% mark for the first time in 17 months.This was a result of acceleration in food prices and the multiple rounds of fuel price hikes that govt undertook in late May in the wake of rising energy costs due to the prolonged conflict in West Asia.Data released by NSO on Monday showed the food index rose 5.3% in June, above 4.8% in the preceding month amid deficit monsoon, which is likely to put further pressure on food prices in coming months.
Inflation in the “restaurants and accommodation services” category, which rose sharply in recent months due to higher prices of commercial cooking gas, accelerated further to 6.9% in the month, reflecting increased food prices across eateries.This is the first time that retail inflation crossed 4% in the new CPI series having 2024 as base year, which was released in Feb. The old and new CPI series are not strictly comparable as the latter has incorporated new data sources and revised methodologies. June bore the full brunt of multiple retail fuel price hikes, as personal transportation costs rose 7.4% from 3.1% in May.
