Retail inflation jumps to 9.87% in June
New Delhi: Consumer price index-based inflation for June shot up to 9.87 per cent, compared with 9.31 per cent last month, mainly due to the rise in vegetable and fruit prices.
A higher CPI reading for June has further dampened hopes of a policy rate cut by the Reserve Bank of India this month end, say economy watchers.
With the rupee falling nearly eight per cent against the dollar in recent weeks, the RBI is likely to keep the policy rates unchanged despite contraction in factory output in May.
Meanwhile, food inflation in June rose to 11.84 per cent from 10.65 per cent last month, official data released on Friday show.
RBI Chief Raghuram Rajan stated that more economic data is needed to be confident that economic growth is picking up, although he added that the benefits to exports from the Rupee's fall is yet to kick in.
Date 11-12-13, Duration 2:19, Views 37