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Retail inflation based on Consumer Price Index (CPI) rose to a three-month high of 4.81 per cent in June 2023, mainly on account of hardening prices of cereals and pulses, though it remained within the comfort zone of the Reserve Bank. The CPI based inflation moved northwards after declining for four months since February. CPI inflation stood at 4.31 per cent (revised upward from 4.25 per cent) in May 2023 and 7 per cent in June 2022. The previous high CPI was in March at 5.66 per cent.

The National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation in its data has showed that Rural CPI (General) in June 2023 stood at 4.72 per cent as against 4.23 per cent in May. The Urban CPI (General) stood at 4.96 per cent in June as against 4.33 per cent in May. The index value for Rural, Urban and Combined CPI (General) stood at 181.8, 179.9 and 180.9 respectively, in June 2023.

According to the data, the inflation in the food basket was at 4.49 per cent in June, higher than 2.96 per cent in May. The food basket accounts for nearly half of the CPI. Annual rate of price rise was 19.19 per cent in case of spices, 12.71 per cent in 'cereals and products', 10.53 per cent in 'pulses and products', and 7 per cent in eggs. Fruits too were marginally costlier in June year-on-year. However, there was a decline in inflation in 'oil and fats' (- 18.12 per cent) and vegetables (-0.93 per cent).