The inflation rate for June 2022 was 7.01% which is way past above RBI's tolerance limit of 6%. The Russia-Ukraine war and high crude oil prices have been the major contributors behind the inflation rate being above RBI's upper tolerance limit.
As per the data derived from National Statistical Office (NSO), the inflation in the basket of goods stood at 7.75% in the month of June 2022 as compared to 7.97% in the month of May.
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The inflation figure for vegetables settled down to 17.37% for June, from 18.26% in May. For 'pulses and products' it slowed to a negative of 1.02% against negative 0.42% in the preceding month of this year.
“The rate of price rise in 'cereals and products' moved up to 5.66%, from 5.33% in the month of May. Inflation in the 'fuel and light' category rose to 10.39% as against 9.54% in May 2022, while that for fruits increased to 3.10% from 2.33%,” a government official said.
The interest rates were hiked by 90 basis points (bp) taking it up to 4.9%. It is very much expected that the interest rates are likely to be increased further. The Governor of RBI, Shantikanta Das has revealed that the interest rates and inflation rates are not going to decrease any sooner till the end of the calendar year.
The Indian government has bestowed the responsibility of keeping the inflation rate within the range of a 2% margin on either side, to the Reserve Bank of India (RBI).
India's industrial production rose 19.6% in May 2022 against 27.6% in May 2021.
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