Consumer price inflation seen up in June due to soaring vegetable prices

Consumer price inflation in India likely increased in June, halting a five-month decline, according to a Reuters survey of economists. The uptick is primarily attributed to a surge in vegetable prices, driven by crop damage caused by severe weather conditions. The prices of tomatoes, onions, and potatoes rose sharply last month due to extreme heat and heavy floods in northern states, disrupting agricultural production.

Core inflation, which excludes volatile items like food and energy and is considered a more reliable indicator of domestic demand, was projected to reach 3.10 per cent in June, according to the median estimate from a smaller group of 19 economists. Although the Indian statistics agency does not officially publish core inflation figures, economists derive estimates from CPI data.