The rate of price rise based on Consumer Price Index (CPI), which touched a high of 10.36 per cent in May, slipped a little in June. However, it remained in double digits for the third month in a row.
Prices of vegetables turned costlier by 27.60 per cent, followed by edible oils (16.58 per cent) and milk products (12.75 per cent) in June on an annual basis. Fruits rose at a lesser pace of 6.92 per cent during the month.
The high inflation is likely to weigh on RBI which will review the interest rates on July 31.
According to economists, inflation still remains at an elevated level providing little room for RBI to ease interest rate in its upcoming policy review.
RBI Governor D Subbarao has stated that inflation is above the comfort level of the central bank.
As per the official data released today, lower rate of price rise was noticed in spices, sugar and soft drinks.
The marginal decline in retail inflation has resulted due to 'high base effect' of Housing Index last year, which is also captured in the CPI computation.
Fuel and light category showed a rise of 10.34 per cent for the month under review while clothing and footwear registered an increase of 11.04 per cent. (MORE)
