Retail inflation for industrial workers eases to 3.67% in June

Retail inflation for industrial workers eased to 3.67% year-on-year in June, down from 3.86% in the month prior, the ministry of labour and employment said in a statement on Tuesday.

The Consumer Price Index-Industrial Workers (CPI-IW) also moderated against the 5.57% annual rise reported in June 2023.

The All-India CPI-IW for the latest June stood at 141.4 points, up from 139.9 points in May.

The food and beverages group increased to 148.7 points in June from 145.2 points in May, while the fuel and light segment dipped to 148.8 points from 149.5 points.

The clothing and footwear segment rose to 144.2 points in June from 143.6 in May. The pan, supari, tobacco and intoxicants segment also increased, to 161.6 points in June from 161.2 in May.

The housing group remained unchanged in June, compared to the previous month, at 128.4 points.

The Labour Bureau, an attached office of the labour ministry, compiles the Consumer Price Index for Industrial Workers every month based on retail prices collected from 317 markets spread across 88 industrial centres in the country.

Interestingly, retail inflation based on the consumer price index rose to 5.08% year-on-year in June after dropping to a 12-month low of 4.75% in May.

The rise in June was due to higher food inflation, which accounts for nearly 40% of the consumer price basket.

Food inflation based on the consumer food price index (CFPI) rose 9.36% year-on-year in June, compared to an 8.69% rise in May and 8.70% in April.

India’s retail inflation has been below the 6% mark since September, remaining within the Reserve Bank of India’s tolerance range of 2-6% for 10 consecutive months.

Food prices have remained elevated for over a year—and have stayed above 8% since November—primarily due to last year’s uneven and below-normal monsoon rains.

The higher food inflation in June was because of the rise in prices of items such as cereals, vegetables, milk, and milk products.