Retail inflation crosses 6%; at near two-year peak
Retail inflation in India, or consumer price index (CPI), has risen to its 23-month peak and stood at 6.07%in July.
Consumer prices in India went up 5.77 percent year-on-year in June of 2016, accelerating for the fourth straight month and reaching the highest since August of 2014.
According to data provided by Ministry of Statistics & Programme Implementation (MoSPI) showed
As per data released by Central Statistics Office (CSO) of Ministry of Statistics & Programme Implementation (MoSPI), consumer price index (CPI) rose to 5.77% in June 2016 as against 5.76% in May 2016 and 5.40% in June of last year.
A Reuters poll of economists expected retail inflation to register at 5.90% last month from a year ago.
Analysts surveyed by Reuters expected output at factories, mines and utilities to expand 1.5% in June from a year earlier. In May, contrary to a predicted contraction, output rose 1.2%.
The industrial output data are based on an old series not reflected in India`s current gross domestic product figures. As a result, analysts set little store by those numbers as a guide to the economy`s broader health, Reuters said.
Reserve Bank of India (RBI) has set a target of 5% for retail inflation by March 2017. This is the fourth-month when inflation swam above the target.
Earlier this month, Government of India accepted an official inflation target of 4% (plus or minus 2%) for the next five years.
RBI will have to write a letter to the Government explaining causes if it misses this target.