There is news of relief on the inflation front. The Consumer Price Index (CPI) has declined slightly in June 2022. The Consumer Price Index (CPI) stood at 7.01 per cent in June, up from 7.04 per cent in May 2022 and 7.79 per cent in April. Food inflation, on the other hand, stood at 7.75 per cent in June, up from 7.97 per cent in May and 8.38 per cent in April.
In June, the consumer price index rate in urban areas remained above eight per cent. The consumer price index rate in urban areas stood at 8.04 per cent in June, up from 8.20 per cent in May. Consumer price index rates have risen in rural areas. In May 2022, the consumer price index rate in rural areas stood at 7.76 per cent, rising to 7.61 per cent in June.
The central government had on May 21 decided to reduce excise duty on petrol and diesel by Rs 8 and Rs 6 per liter, respectively. Since then, six states have also reduced VAT. It is believed that the reduction in transportation costs has led to a slight decline in inflation.
However, the rise in crude oil prices due to the Russia-Ukraine war remains unchanged.
The Consumer Price Index rate is still above the upper limit of the RBI’s tolerance band of 6 per cent. The RBI has raised its inflation forecast for 2022-23 from 5.7 per cent to 6.7 per cent.
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