New Delhi, June 12 (PTI) retail inflation exceeded 2.82 percent at a six -year low in May, due to food prices, less than 4 percent for the fourth consecutive month from the average target of RBI, according to government data released on Thursday.
Consumer Price Index (CPI)-Based retail inflation was 3.16 percent in April and 4.8 percent in May 2024. The previous lower was 2.57 percent in February 2019.
On reducing inflation, the Reserve Bank last week cut a jumbo rate of 50 basis points, taking a total of 100 bps since February.
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According to data from the National Statistics Office (NSO), the food inflation in May was 0.99 percent, which was much less than 8.69 percent in the month of the year.
The NSO said in a statement, “The significant decline in headline inflation and food inflation during the month of May 2025 is primarily responsible for the decline in inflation of pulses and products, vegetables, fruits, grains and products.
Food inflation in May 2025 is the lowest since October 2021.
According to NSO data, inflation in rural areas was 2.59 percent in May, while in urban India it was 3.07 percent.
Between states and UTS, Kerala recorded the highest inflation at 6.46 percent, followed by Punjab (5.21 percent), Jammu and Kashmir (4.55 percent), Haryana (3.67 percent) and Uttarakhand (3.47 percent).
The lowest inflation was 0.55 percent in Telangana.
The Reserve Bank of India (RBI), which has been assigned by the government to ensure retail inflation, remains at 4 percent with a difference of 2 percent on both sides, estimated CPI inflation at 3.7 percent for 2025-26, 2.9 percent with Q1, 2.9 percent, Q2 3.4 percent, Q3 3.9 percent, and Q4 4.4 percent.
ICRA’s Chief Economist, Aditi Nair, commented on the data, stating that in May 2025, CPI inflation was cooled at a low of 2.8 percent at a low of 2.8 per cent, headed by the section of food and beverages, in which the decisions of the Monetary Policy Committee of the Reserve Bank were valid.
Overall, change in monetary policy stance seems to be a very strong sign of a stagnation, especially when combined with unexpected CRR cut, he said.
“So far, we expect the rates to be unchanged in the August 2025 policy reviews. Nevertheless, given our low inflation and development forecast, we are not ruling the possibility of cutting the final 25 bpS rate in October 2025, when we were not rulers when monsoon outnight and its effects will be clear,” said Nanner.
NSO collects price data covering all states/UTs from selected 1,114 urban markets and 1,181 villages. PTI NKD CS NKD Hair
This report is auto-generated with PTI News Service. ThePrint does not have any responsibility for its content.