With the decline of food prices and kitchen items, India’s headline retail inflation eased to a 12-month low of 4.75 per cent in May on an annual basis from 4.83 per cent in April, while the industrial output slowed to a three-month low of 5 per cent in April as against 5.
4 per cent in March this year, mainly due to poor show by the manufacturing sector, the two government data showed on Wednesday. As per data released by the National Statistical Office (NSO), rural and urban inflation rates are 5.28 per cent and 4.
15 per cent respectively. “Inflation in the food basket was 8.69 per cent in May, marginally down from 8.
70 per cent in April,” the NSO data showed. The consumer price index or CPI inflation in April was at 4.83 per cent.
The headline rate for last month is the lowest after May 2023 when it came in at 4.31 per cent and has now been under the 5 per cent mark for three consecutive months starting March 2024. With this number, the retail inflation has remained within the Reserve Bank of India’s (RBI’s) target range of 2-6 per cent since September 2023.
However, the government has tasked the central bank to ensure the consumer price index or CPI inflation remains at the target range. Earlier this month, the RBI had also projected the CPI inflation for 2024-25 at 4.5 per cent, with Q1 at 4.
9 per cent, Q2 at 3.8 per cent, Q3 at 4.6 per cent, and Q4 at 4.
5 per cent. “Notably, the spices category has seen a considerable decline in year-on-year inflation compare.
