The retail inflation, measured on consumer price index (CPI), was 8.28 percent in May. Its lowest was 7.65 percent in January, 2012, the month the government started releasing the data in percentage terms. JPN/Agencies
As per the data released by the government on Monday, food inflation fell to 7.97 percent in June against 9.56 percent in May.
During the month under review, the rate of prise rise in vegetable was 8.73 percent against 15.27 percent in May. Cereals and its products were cheaper, with inflation of 7.6 percent as against 8.81 percent a month ago.
The rate of price rise for egg, fish and meat was 8.27 percent in June, lower than 10.11 percent in May.
Inflation in milk and milk products was 11.06 percent in June, slightly lower than 11.28 percent in the preceding month, showed the data.
Among others, food and beverages inflation stood at 7.9 percent in June vis-a-vis 9.4 percent in May.
The rate of price rise in fuel and light was 4.58 percent during the month as against 5.07 percent rise in May. Fruit inflation came down to 20.64 percent compared to 23.17 percent a month earlier.
For oil and fats, it was 0.35 percent in June compared to 0.91 percent rise in the previous month.
According to the data, the corresponding provisional inflation rates for rural and urban areas for June are 7.72 percent and 6.82 percent compared to 8.86 percent and 7.55 percent in May, respectively.
Fall in retail inflation offers big relief: Assocham
Expressing relief at retail inflation falling to a 30-month low in June, industry body Assocham has suggested a slew of steps like scrapping of APMC Act and encouraging private sector investments in back-end infrastructure to bring down prices further.
"Indications that growth in the retail prices is moderating offers a big relief to the nation and its policy makers," Assocham Secretary General D S Rawat said.
"Existence of numerous tiers of agents in the consumer product distribution results in higher retail inflation. This leads to wage-price spiral, rising nominal wages, supply constraints especially in infrastructure and demand-supply imbalances in various regions which push the retail prices higher," he added.
The industry chamber suggested that the government needs to come out with a definite time-bound roadmap for improving the management of supply of consumer products.
This includes measures like scrapping of the Agriculture Produce Marketing Committee (APMC) Act allowing farmers to sell their produce freely; slashing taxes and commissions on primary products related to agriculture, forestry and fishing at both Centre and States; encouraging private sector to invest in back-end to streamline value chains; and utilizing rural development schemes to create productive infrastructure.
The retail inflation, measured on consumer price index (CPI), was 8.28 percent in May. Its lowest was 7.65 percent in January, 2012, the month the government started releasing the data in percentage terms.