Retail inflation numbers for the month of April and May were not released by the government due to insufficient data collection in wake of the ongoing Covid-19 crisis.
Food inflation in June increased by 7.87 per cent, according to Consumer Price Index (CPI) data.
The inflation figures are based on data collected from limited markets in view of the restrictions imposed on account of coronavirus pandemic, the ministry of statistics & programme implementation said in a release.
The data collected, however, did not meet the adequacy criteria for generating robust estimates of CPIs at the state-level, it added.
According to the data, the annual inflation in cereals and related products was 6.49 per cent, and 16.22 per cent in ‘meat and fish’ segment. For ‘pulses and products’, it was 16.68 per cent, while that of spices stood at 11.74 per cent.
The inflation in vegetables basket was 1.86 per cent, while it was in negative zone for fruits. In the ‘fuel and light’ segment, it was 2.69 per cent.
The inflation figures for June exceeds the Reserve Bank of India‘s (RBI’s) medium-term target of 4 per cent. The RBI mainly factors in the retail inflation while arriving at its bi-monthly monetary policy.
The central bank has already reduced its benchmark repo rate by a cumulative 115 basis points since the lockdown started on March 25.
“In view of the preventive measures and announcement of nation-wide lockdown, price collection of CPI through personal visits of price collectors was suspended. During the lockdown period, prices were collected through telephonic call from the designated outlets in selected markets, which was supplemented by information collected during the personal purchase of field staff for the items being transacted from neighborhood outlets keeping in view the travel advisories,” the release further said.
As the various pandemic related restrictions were gradually lifted and non-essential activities started resuming operations, NSO collected prices from 1,030 urban markets and 998 villages, for commodities that were available and transacted in June, 2020.
(With PTI inputs)
In Video:Retail inflation stood at 6.09%; food inflation at 7.87%