India's retail inflation accelerated to 4.38% in June as elevated food and fuel prices, geopolitical tensions in West Asia and concerns over an uneven monsoon kept price pressures firm. The latest consumer price index (CPI) reading breached the Reserve Bank of India's medium-term inflation target of 4% after 17 months, ending a prolonged period of relatively subdued inflation.
Data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday showed retail inflation rising from 3.93% in May to 4.38% in June, broadly in line with market expectations. A Reuters poll of economists had projected consumer inflation at 4.3% for the month, with estimates ranging between 3.65% and 5.50%.
The June print is also the highest since India adopted its revised CPI series with a new base year and updated consumption basket earlier this year.
