India’s consumer price inflation still negative at (-) 1.54% in June
12 Jul 2017
Consumer price inflation based on the consumer price index stood at 1.54 per cent in June 2017 against levels around 2.18 in May and 5.77 per cent in June last year, helped by smaller rises in food prices, despite the onset of monsoon.
But, as monsoon progresses, consumer prices could still rebound with a spurt in the prices of vegetables and other essentials, say experts.
Consumer price inflation for the rural areas stood at 1.59 per cent in June 2017 against 2.30 per cent in May and 6.29 per cent in June 2016.
Consumer price inflation for the urban areas stood at 1.41 per cent in June 2017 against 2.13 per cent in May 2017 and 5.26 per cent in June 2016.
Food price inflation stood at -2.12 per cent in June 2017 against -1.05 in May and 7.79 per cent in June last year.
Food price inflation for rural areas stood at -1.62 per cent in June 2017 against -0.60 in May and 7.69 per cent in June 2016.
Food price inflation for urban areas stood at -3.62 per cent in June 2017 against -1.85 per cent in May and 8.16 per cent in June last year.
If the trends continues, it is likely that RBI's Monetary Policy Committee (MPC), which has a mid-term inflation target of 4 per cent, may think of easing liquidity further.