Prices of pulses and products increased by 16.68% year-on-year, while the inflation for meat and fish came in at 16.2%, as per CPI data released by the government.

A local grocery market in India with kirana stores stores selling household items as well There is a board indicating that the store sells all kinds of spices tea saffrong among others and on the right a woman clad in aburkha is smiling as she walks from a store purchasing somethingImage source: Ninara via Flickr
Money Inflation Monday, July 13, 2020 - 20:39

With supply constraints easing as the economy opens up, food price inflation in June eased to 7.87%, while retail inflation rose to 6.09%, according to Consumer Price Index (CPI) data. As per reports the food price inflation came in at a nine-month low.

Retail inflation rose to 6.09% in June, mainly on account of higher prices of food items, the government data showed on Monday.

The government had not released the CPI data for the months of April and May citing insufficient data collection amid the coronavirus pandemic. Data was last released in March when it was at 5.84%.

Prices of pulses and products increased by 16.68% year-on-year, while the inflation for meat and fish came in at 16.2%. Prices of oils and fats grew by 12.3%, personal care services by 12.4% and that of pan, tobacco, intoxicants by 9.7%.

Prices of vegetables saw only a marginal increase by 1.86%, while inflation in fruits actually decreased by 0.68%.

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.

National Statistical Office (CSO) revised food inflation downwards for May to 9.2% from the 9.7% it estimated earlier. The provisional rural food inflation in June was revised to 8.41%, which is a lot more than the urban food inflation at 6.92%.

The data collected, however, did not meet the adequacy criteria for generating robust estimates of CPIs at the state-level, it added.

The retail inflation based on Consumer Price Index was 3.18% in June 2019.

The government had released truncated CPI data for April and May in the backdrop of the lockdown to contain COVID-19 pandemic.

“In view of the preventive measures and announcement of nation-wide lockdown by the Government to contain spread of COVID-19 pandemic, the price collection of Consumer Price Index (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 neighbourhood outlets keeping in view the travel advisories,” the ministry said.

(With PTI inputs)

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