Rising Food Prices in India: Inflation Doubles in June 2024

Food prices in India have surged, causing concern for consumers and policymakers. In June 2024, food inflation nearly doubled to 8.36% compared to 4.63% in June 2023.

Overall Retail Inflation

The overall retail inflation rate in India for June 2024 is 5.08%. This increase is driven by rising prices in various food categories such as cereals, meat, milk, and vegetables.

Challenges for Policymakers

Policymakers aim to bring retail inflation down to 4%, but the current rate remains above this target. The Reserve Bank of India (RBI) has maintained the repo rate for the eighth consecutive time to combat inflation.

Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, noted that while food inflation risks persist, better sowing patterns and rainfall distribution may ease price pressures in the future.

Future Outlook

The next RBI monetary policy meeting is scheduled for early August, where further measures to control inflation may be discussed.