India's consumer price index (CPI) inflation increased to 4.81% in June 2023, the first rise in five months. The inflation exceeded expectations of 4.58% but remained below the upper limit of 6% set by the RBI. This increase was primarily driven by a less supportive base and a surge in vegetable prices. Food inflation rose to 4.49% in June. The CPI stood at 180.9 in June 2023, compared to 178.2 in May and 172.6 in the same month the previous year.

The inflation rate in June 2023 was 4.81%, higher than 4.31% in May 2023 but lower than 7.01% in June last year. The consumer food price index (CFPI) rose to 4.49% in June 2023, up from 2.43% in May and down from 7.75% in June of the previous year. In June 2023, food and beverages inflation was at 4.63%, pan, tobacco, and intoxicants inflation at 3.65%, clothing and footwear inflation at 6.19%, housing inflation at 4.56%, fuel and light inflation at 3.92%, and miscellaneous inflation at 5.19%.

Aditi Nayar, Chief Economist at ICRA, attributed the spike in CPI to a less supportive base and a surge in vegetable prices. She expects Q2 FY2024 CPI inflation to exceed the MPC's forecast of 5.2%. Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, predicted continued disruptions in perishable food prices, which may lead to an upside in inflation. Manish Chowdhury, Head of Research at StoxBox, believes that despite eased inflation, a rate hike is still possible in the upcoming FOMC meeting. Vivek Rathi, Director of Research at Knight Frank India, stated that the low inflation level supports maintaining key policy rates, and stable policy environment and consumer enthusiasm will drive the housing market.