India's retail inflation for June surges to 4.81%, economists expect it to rise further; Check details

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Reuters poll of 55 economists. Apart from the retail inflation, the food inflation also surged to 4.49 percent against a revised 2.96 percent in May.

ALSO READ: CPI inflation rises higher-than-estimates to 4.81% in June 2023; food inflation jumps to 4.49% Citing the reason for the rise in inflation, experts say erratic and incessant rainfall in northern India may have pushed vegetable prices higher and it is most likely to rise further in coming months. ICRA's economist Aditi Nayar said, as quoted by Reuters, "A less supportive base and the onset of the spike in vegetable prices pushed up the CPI inflation to a higher than anticipated 4.8%." Prices of vegetables will remain high in July and may push retail inflation to an "uncomfortable 5.3%-5.5%" this month, Nayar added.

Earlier, reports arrive that fast food chain McDonald's dropped tomatoes from its burgers and wraps in many areas of India citing its rising prices. On the other side, Emkay Global Financial Services' lead economist Madhavi Arora opined that the sharp sequential uptick in food-led Inflation could spill over till August.

She said to Mint, “The sharp sequential uptick in food-led Inflation could spill over till August, implying pressure on headline print will stay. There isn't much RBI can do in the food supply management but this adds pressure on them to stay vigilant on domestic dynamics.

Global externalities have already pressed them to signal wait-and-watch guidance and the transient food spike will only complicate their reaction function." Similar views were expressed by Knight Frank India's Director of Research Vivek Rathi. He said, "Consumer inflation in June 2023 increased primarily due to food components of cereals, milk items, and spices, while