Inflation, as measured by the Wholesale Price Index (WPI), was 7.55 per cent in May. In June last year, it was 9.51 per cent.
Overall food inflation rose to 10.81 per cent in June, from 10.74 per cent in May. In June last year, inflation rate in this category was 7.6 per cent. Food articles have 14.3 per cent share in the WPI basket.
Terming the rate of price rise as "a matter of concern", Planning Commission Deputy Chairman Montek Singh Ahluwalia said "inflation is high mainly because of food and non-core elements. We hope that we will be able to bring it down...Still a problem."
Inflation is above the budget forecast. Finance Ministry's projection is that it might go down to 7 per cent in few months, he said, adding, "slowing down is reflective of that which is good".
However, experts feel that June's high inflation number may not prompt RBI to cut interest rate even though India Inc has been pressing for easing of rates to prop up growth.
"RBI may not ease interest rate going by the number released today," Crisil Chief Economist D K Joshi said.
However, Department of Economic Affairs Secretary R Gopalan said "fall in inflation will be a significant input for RBI to take view on monetary policy".
According to Minister of State for Finance, Namo Narain Meena, availability of food articles is expected to increase, which will address supply constraints.
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