Image for representation purposes only. | Photo credit: V. Raju
India’s retail inflation continued to decline to 4.25% in May from 4.7% in April, with rising food prices faced by consumers moderating to 2.91%.
It is the third month in a row that inflation has remained below the Reserve Bank of India’s 6% upper tolerance limit after an extended streak above it.
NOTICE | Disconcerting expansion: on the rise in retail price inflation
Urban consumers continued to face slightly higher inflation at 4.27% than their rural counterparts (4.17%), but food inflation was lower in urban areas, dropping significantly to 2.43 % against 3.7% a month earlier.
In comparison, the moderation in food price increases in rural areas was less benign, falling from 3.9% in April to 3.2% in May.
Month-on-month, however, price levels continued to strengthen, with the consumer price index (CPI) rising 0.51% for the second month in a row, while the index for Consumer Food Prices (CFPI) rose 0.7%, compared to 0.6% in April.