Food price inflation, which peaked at 8.31% in April, eased slightly to 7.97% in May
Food price inflation, which peaked at 8.31% in April, eased slightly to 7.97% in May
India’s retail inflation eased marginally to 7.04% in May from 7.79% in April, reflecting a more than 6% continuous rise in prices paid by consumers for the fifth consecutive month.
Inflation faced by rural consumers fell from 8.38% in April to 7.01% in May, but for homes in urban areas, the pace of price increases was almost flat month-on-month, rising from 7.09% in April to May increased to 7.08%.
Food price inflation, which peaked at 8.31% in April, eased slightly to 7.97% in May, thanks to a reduction in rural food inflation from 8.5 per cent to 7.76%. However, the Consumer Food Price Index for urban India rose from 8.09% in April to 8.2% in May.
On a month-on-month basis, the Consumer Price Index was up 0.94% in May compared to April, while the Consumer Food Price Index (CFPI) rose 1.59%. Within the CFPI, the rural food price index rose by 1.34 per cent and urban prices by 1.84 per cent.
Fuel and light inflation eased to 9.54% in May from 10.8% in April and inflation in transport and communication also declined to 9.54% in April from around 11%.
Growth in prices of clothing and footwear also remained at an all-time high of 8.85%, just one percentage point lower than May’s rate of 9.85%. Inflation in footwear prices remained in double digits at 10.72% (compared to 12.12% in April), while clothing inflation fell from 9.51% in April to 8.53% in May.
Inflation in household goods and services as well as miscellaneous goods, which indicated that price growth pressures had broadened and normalized in April, moderated marginally in May from 7.97% to 6.85% and 8.03% to 6.82%, respectively .
While inflation in food and beverages moderated to 7.84% in May from 8.1% in April, three sub-categories of food items registered a further increase – vegetables, meat and fish, and milk products. Inflation in vegetables rose from 15.41 per cent in April to 18.26 per cent in May, while that of meat and fish rose to 8.23% from 6.97 per cent. The pace of increase in the prices of milk and related products was 5.64% in May, from 5.47 percent in April.
Six other sub-groups of food and beverages registered a deceleration in price growth led by edible oils and fats (17.28% in April from 13.26% in May), while pulses and eggs declined by 0.42% and 4.64%. Inflation was recorded. in May, compared to 0% and 1.86% in April, respectively.
Eleven of the 22 states and union territories for which the National Statistical Office released separate inflation trends reported price increases at a faster pace than the all-India rate of 7.04%. The highest inflation rate was reported from Telangana (9.45%), Maharashtra (8.52%), Andhra Pradesh (8.49%), West Bengal (8.27%) and Jharkhand (7.51%).
Kerala recorded the lowest inflation rate at 4.82% (from 5.08% in April), followed by Delhi (5.57%), Himachal Pradesh (5.63%), Tamil Nadu (5.72%) and Punjab (5.77%).