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India’s CPI - inflation eases to 10.02% in June

18 Jul 2012 Evaluate

The annual rate of inflation, based on the consumer prices index (CPI) in India, eased in the month of June to 10.02 percent, in line with the trend shown by wholesale price index (WPI) inflation. According to the data released by Central Statistics Office, provisional annual inflation rate based on all India general CPI (Combined) for June 2012 on point to point basis stood at 10.02 percent as compared to 10.36 percent for the previous month of April 2012.

According to the Ministry of Statistics and Programme Implementation, which released the monthly provisional CPI on Base 2010=100 along with annual inflation rates for June 2012, all India provisional General (all groups), CPI numbers of June 2012 for rural, urban and combined were at 120.6, 118.5 and 119.7 respectively, The corresponding inflation rates for rural and urban areas for June came in at 9.74% and 10.44% respectively as against May’s  9.57% and 11.52%, respectively, which indicated that the rate of price rise rose in rural areas while that in the urban areas eased slightly.

Although the India’s annual consumer price inflation slowed slightly in June, but food prices accelerated as concerns about below-average monsoon rains gained momentum. Food inflation in the CPI accelerated to 10.71% in June from 10.66% in May. However, unlike most central banks, the Reserve Bank of India uses wholesale inflation in its policy formulation, as annual consumer price inflation data was only launched this year in January. India’s wholesale price index rose to a lower-than-expected annual 7.25 percent in June, its slowest rate since January.

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