Jun Retail Inflation Likely to Decline Further: Mint Poll

Food inflation, which constitutes nearly 40% of the CPI basket, was extremely high in May and June last year

- Manjul Paul

India's retail inflation is likely to decline further to 2.3% in June from 2.8% in May, according to a Mint poll of 20 economists. The continued moderation in food inflation drove retail inflation to a new low in over six years, supporting the preemptive rate cut of 50 basis points by the Reserve Bank of India at its last month's policy meeting.

Economists polled by Mint expect the Consumer Price Index (CPI) inflation to fall in the range of 1.8-2.6%. The official data is scheduled to be released on 14 July.