Government to release key data on June retail inflation on Tuesday

The government on Tuesday will release the key data on June retail inflation which will be factored by the Reserve Bank in its next bi-monthly monetary policy to be announced in early August.

The retail inflation has remained above 6 per cent since January this year forcing the central bank to go for two back-to-back hikes in policy rates (repo).

The Consumer Price Index (CPI) based retail inflation, which was at 7.04 per cent in May, is unlikely to reach the RBI's comfort zone of below 6 per cent soon amid high commodity prices due the ongoing Russia-Ukraine war.

The data on CPI is scheduled to be released at 5.30 in the evening by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).

Last month, the Reserve Bank in its bi-monthly monetary policy review raised the benchmark repo rate -- at which it lends short-term money to banks -- by a sharp 0.50 per cent to 4.90 per cent to rein in spiralling prices. It followed an off-cycle meeting on May 4, when the central bank hiked the repo rate by 0.40 per cent.

RBI Governor Shaktikanta Das, while speaking at Kautilya Economic Conclave on Saturday, had exuded confidence that the price situation will gradually improve in the second half of the current fiscal.

He also said the central bank would continue to take monetary measures to anchor inflation with a view to achieving strong and sustainable growth.

The Governor said that price stability is key to maintaining macroeconomic and financial stability and the central bank will undertake measures for preserving and fostering macroeconomic stability.

The Reserve Bank, which factors in the CPI in its monetary policy, had in June raised the inflation forecast for the current financial year to 6.7 per cent from its previous estimate of 5.7 per cent.