Industry Odisha Bureau, Jul14: Owing to the soaring food prices, the retail inflation based on the Consumer Price Index (CPI) reportedly breached the 4 per cent target of Reserve Bank of India (RBI) for the first time since January 2025.
As per media reports, “The CPI-based retail inflation jumped to 4.38 per cent last month in comparison to its previous month ’s 3.93 per cent against the RBI’s medium-term target of 4 per cent”.
Experts have reportedly attributed such a scenario to the El Nino-impacted below-normal monsoon forecast this year in India along with the renewed West Asia tensions of late that has reportedly once again spiked up global crude oil prices as well as the re-disruption in the global supply chains.
Experts are also reportedly apprehensive of further inflationary pressures ahead going by the erratic rainfall in the major agricultural regions in India despite July being the sowing month of the ongoing Kharif season, while the eastern India regions have ironically been flooded with the reportedly very heavy downpour.
Experts are reportedly concerned about the rural households as they are primarily dependent on agriculture and its output. If this year’s Kharif crops get adversely affected, the elevated inflationary pressures could take a heavy toll on the purchasing power and consumption capability of the rural populace.
Media reports have stated that, food inflation has already “risen to 5.32% in June from 4.78% in May”.
Meanwhile, the RBI has reportedly “projected India’s GDP growth of 6.6% for this fiscal (2025-26), lower than its earlier estimate, while the World Bank (WB) and the Asian Development Bank (ADB) have also lowered their forecasts to the same level. Notably, c stood at 7.7% in the previous fiscal year (2024-25).”
