THe June numbers for Consumer Price Index (CPI) will be released today and the price rise worry for the economy is seen rising even further above the Reserve Bank of India (RBI's) comfort zone. Economists see CPI inflation index clocking in at 6.5% for the month of June which would be a notch higher than the 6.3% in May and mark the highest level since November 2020 for the gauge. This will also make June the second consecutive month when retail inflation will be higher than the upper limit of the Reserve Bank of India’s tolerance band of 6%
Season uptick in food prices, rising petrol prices will add the pressure on the Index though the former is likely to see some easing in July due to the arrival of monsoon but the spike in dairy prices in July will also add the spike back to the graph. Petrol prices have now been up 37 times in the last 70 days reaching record highs across the country and retailing above Rs 100/lt in all 4 metros.