Retail inflation marginally eases to 7.01% in June; IIP grows 19.6% in May

CPI inflation stays well above the Reserve Bank of India's tolerance limit for sixth consecutive month

India's retail inflation marginally eased in June to 7.01%, but stayed well above the Reserve Bank of India's tolerance limit for sixth consecutive month as lower fuel and cooking oil prices offset higher services and food costs, showed government data on Tuesday.

Despite a substantial recent increase in food prices, rising at the fastest pace in nearly two years, overall inflation was partly contained after the government cut taxes on petrol and diesel and imposed restrictions on food exports. The consumer price index (CPI) based inflation stood at 6.26% in June 2021 and 7.04% in May 2022.

Inflation in the food basket