India's retail inflation climbed in June, according to the data released by the Ministry of Statistics & Programme Implementation on Friday.

What Happened: The Consumer Price Index inflation accelerated to 5.08% in June, higher than May's 4.75%; but it remained within the Reserve Bank of India’s (RBI) tolerance band of 2%-6%. 

The Consumer Price Food Index or CPFI surged to 9.39% versus 8.69% a month ago.

Vegetable inflation saw the highest rise at 29.32%. The inflation rate for pulses was 16.07%. Food and beverage inflation was recorded at 8.36%.

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The numbers will be key for the RBI’s monetary policy meeting scheduled for the first week of August.

Shaktikanta Das, the governor of the Indian central bank, ruled out the possibility of a rate cut in an interview with CNBC-TV18 on Thursday. "It is too early to talk about interest rate cuts," Das said. 

He stopped short of providing any further guidance citing economic uncertainties. Das had expected June's headline inflation to be close to 5%.

"The overall economic environment globally and in India is so uncertain to talk in terms of interest rate cut… second thing is that CPI headline inflation continues to be close to 5% and according to surveys done it is expected to be close to 5% (for June). So, I think it is too early to talk on interest rate cut," he added.

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