(Representative image)

NEW DELHI: Retail or consumer price index (CPI) inflation rose to 3.18 per cent in June from 3.05 per cent in May, data released by government on Friday showed. The figure stood at 2.99 per cent in April.

As per the data, overall food inflation based on consumer food price index in the food basket rose to 2.17 per cent in June, up from 1.83 per cent in May 2019.

Retail inflation has been showing a rising trend since January this year when it stood at 1.97 per cent.

The Reserve Bank of India mainly factors in the retail inflation while deciding the bi-monthly monetary policy.

A poll conducted by news agency Reuters had expected that retail inflation likely reached an eight-month high in June on rising food prices, but it also stated that the figure will remain below the RBI's target.

"In line with our expectation, CPI inflation remained largely benign...despite the delay in the monsoon and kharif sowing.

"While vegetable prices are likely to firm up in the ongoing month on the basis of seasonal factors as well as higher transport costs, the pick-up in the monsoon rainfall in the last week is likely to boost sowing in the near term, which would help keep food inflation in check," said Aditi Nayar, principal economist, ICRA told news agency PTI.

In another set of data released by the government, industrial output growth slipped to 3.1 per cent in May mainly on account of subdued performance of mining and manufacturing sectors.

The Index of Industrial Production (IIP) had expanded by 3.8 per cent in May 2018. The index grew at 4.3 per cent in April and 0.4 per cent in March this year.

The consumer durables and consumer non-durables have recorded growth of (-) 0.1 per cent and 7.7 per cent, respectively.

In terms of industries, 12 out of the 23 industry groups in the manufacturing sector have shown positive growth in May over the same month last year.

(With agency inputs)

