Retail inflation accelerates to 5 per cent in June

New Delhi: India’s retail inflation rate accelerated to a five-month high of 5.0 per cent in June, government data showed on Thursday, driven by higher fuel prices and a depreciating rupee.

Analysts polled by Reuters had forecast June’s annual increase in the consumer price index at 5.30 per cent, compared with May’s 4.87 per cent.

The forecasts for June ranged from 4.60 per cent to 6.00 per cent. June was the eighth straight month in which inflation was higher than the central bank’s medium-term target of 4 per cent.

The Reserve Bank of India (RBI) last month raised its benchmark interest rate for the first time since 2014, by 25 basis points to 6.25 per cent, citing rising inflation.