India’s retail inflation rate in June at five-month high of 5%

Analysts had forecast June’s annual increase in the consumer price index at 5.30%, compared with May’s 4.87%. The forecasts for June ranged from 4.60% to 6%.

India’s retail inflation rate accelerated to a five-month high of 5% in June, government data showed on Thursday, driven by higher fuel prices and a depreciating rupee.

India’s retail inflation rate accelerated to a five-month high of 5% in June, government data showed on Thursday, driven by higher fuel prices and a depreciating rupee. (Reuters/Photo for representation)

Analysts polled by Reuters had forecast June’s annual increase in the consumer price index at 5.30%, compared with May’s 4.87%. The forecasts for June ranged from 4.60% to 6%.

June was the eighth straight month in which inflation was higher than the central bank’s medium-term target of 4%.

The Reserve Bank of India (RBI) last month raised its benchmark interest rate for the first time since 2014, by 25 basis points to 6.25%, citing rising inflation.