Government data released on Tuesday stated that retail inflation has hit a 22-month-high in June, reported Economic Times. A sharp rise in prices of vegetables have pushed the Consumer Price Index to a 5.77% hike last month. Rural parts of the country recorded a higher inflation at 6.2% compared with urban centres, where the inflation was at 5.26%.
On August 9, Reserve Bank of India Governor Raghuram Rajan will review the monetary policy before his tenure ends in September. This will be his last review. In June, Rajan had kept the rates unchanged, saying he would wait to get a clearer idea about the monsoon situation. The country recorded rain that was 4% above average till July 12. This is expected to help rein in the inflation in vegetables that touched 14.74% in the month of June. It was 0.46% in March. The inflation in pulses has decreased marginally from 31.6% in May to 26.9% in June.
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