Consumer price index-based inflation ticked higher in June, accelerating to 4.38%, as the delayed onset of Monsoon pushed food prices higher during the month. This is the sharpest pace at which retail inflation has grown in the past 18 months.
In the preceding month of May, the retail inflation had stood at 3.93%, leaning towards the lower end of the Reserve Bank of India's tolerance band of 2-6%.
Inflation in the food and beverages segment pushed the headline numbers in June, as it rose from 5.32% as against 4.78% in May.
The sting of rising prices was felt more acutely in the hinterlands, with rural inflation jumping to 4.74% in June, a notable increase from 4.25% in May. Urban inflation also saw an uptick, rising to 3.92% from May's 3.53%. Meanwhile, core inflation—which strips out volatile food and energy prices—climbed to 4.1%, up from 3.8% in the preceding month, indicating broader price pressures in the broader economy.
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Beyond the food basket, several other categories contributed to the upward pressure on household budgets. The highest surge was recorded in the personal care and miscellaneous category, which skyrocketed to a staggering 16.72%.
Other segments also witnessed rising costs, with inflation in restaurants and accommodation services coming in at 6.91%, while the paan, tobacco, and intoxicants category registered an inflation rate of 4.83%.
More muted price increases were seen in the remaining sectors, with recreation, sport, and culture inflation standing at 1.75%, and the information and communication segment seeing a marginal rise of just 0.43%.
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