June’s price-rise plateau mustn’t feed complacency as a complex web of factors is yet to play itself out
Inflation data for June based on India’s consumer price index (CPI) reported some respite from the increasing trend seen since last September. While overall inflation remained at the same level as May, there was some moderation in food inflation. However, a close look at the underlying data across commodities and the factors behind our inflationary surge suggest that any complacency based on the June data may be unwarranted. While overall food inflation may have moderated marginally, wheat inflation for the first time breached the 10% mark in June.