Pricey vegetables lift headline inflation
Inflation based on the Consumer Price Index (CPI) surged in June, corroborating the central bank’s position that the last mile of disinflation remains a challenge.
The gauge printed at 5.1% for June, compared with 4.8% in May as food prices remained high.
Notwithstanding a supportive base effect from last year, food inflation surged to 9.4% on account of pricier vegetables, cereals, milk and fruits.
Vegetables inflation, which has remained in double-digits for eight months now, is a major worry as is rigidity in foodgrains inflation.
Non-food inflation eased for the 17th straight month, sliding to a record low of 2.3%.