CPI inflation decelerates to 7.31% in June 2014
Lower Food Prices pull down the retail inflation
The headline CPI inflation (combined) for June 2014 fell to its lowest level so far to 7.31% (y-o-y) after easing at 8.28% in May 2014, driven by lower food prices. The index increased to 141 from 139.9 seen in May 2014 and 131.4 June 2013. With a weightage of 50%, inflation in food, beverages and tobacco, which softened drove down the headline figure. Retail food prices in June rose 7.90% from a year earlier, lower than a provisional 9.40% rise in May and the lowest increase since February 2012. Consumer Food Price Indices (CFPI) for all India for rural, urban and combined, released separately saw a growth of 8.68%, 6.57% and 9.56%, respectively.The vegetables prices on monthly basis rose to 5.15% from a rise of 3.48% in May. Meanwhile, the prices eased to 8.73% (y-o-y) in June from 15.27% in May 2014 and fruits index eased to 20.64% from 23.17% in May 2014.
CPI inflation in protein-rich items such as eggs, fish and meat eased to 8.27% (y-o-y) in June from 10.11% in May. The rate of price rise for cereals and related products eased to 7.60% in June from 8.81% in the previous month. Meanwhile, the price of milk and its products eased slightly to 11.06% in June compared with 11.28% in the previous month. Prices of condiments and spices also eased to 8.02% from 8.76%in May. Moreover, the fuel and light category eased to 4.58% from 5.07% in May and the price of clothing, bedding and footwear products eased from 8.86% in May to 8.65% in June.
The rate of price rise in rural area increased to stand at 7.72%, substantially lower from 8.86% in May. While in urban areas, the inflation eased to 6.82% from 7.55%.
In combined CPI some of the biggest m-o-m rise was registered by vegetables (5.15%), Egg, fish and meat (1.19%) and milk and milk products (1.12%), leading to a rise in Food, beverages and tobacco category at 1.12%. Clothing, bedding and footwear category also saw a rise of 0.66% and Education, stationery etc. saw a rise of 1.22%. In the urban areas for June also, the biggest m-o-m rise was seen under vegetables (8.21% but higher from 4.20% in May), and fruits saw the rise (1.43%). In the rural areas also for June, the categories increased on m-o-m basis including vegetables (3.84%, after rising to 3.16% in May), Egg, fish and meat (1.13%) and Milk and products (1.11%), leading to a rise in Food, beverages and tobacco category at 0.64%, after rising to 0.77% in May mainly due to fall in fruits and oils and fats categories.
For June 2014, the state wise biggest uptick, in the rural segment, was noted by Meghalaya (2.80%, m-o-m) followed by Lakshadweep (2.77% m-o-m) while biggest fall was recorded in Chandigarh (1.07% m-o-m). For June 2014, the state wise biggest upside, in the urban segment, was noted by Lakshadweep (2.08%, m-o-m), while the biggest fall was noted by Andaman & Nicobar Islands (0.22% m-o-m).
Powered by Capital Market - Live News