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Retail inflation jumps to seven-month high of 3.05% in May
Jun-13-2019

Continuing rising trend for fourth straight month, India’s retail inflation based on Consumer Price Index (CPI) jumped to a seven-month high of 3.05% in May. The inflation was higher than the revised 2.99% in the preceding month, but below 4.87% recorded in May 2018. Also, the inflation still remained within Reserve Bank of India’s (RBI’s) target of 4% for the inflation rate. As per the data, the jump in the CPI was mainly due to rise in prices of kitchen items like vegetables, meat and fish. The previous high was in October 2018, when the retail inflation print came in at 3.38%. Besides, inflation for the overall food basket, based on consumer food price index (CFPI), increased to 1.83% in May as against 1.10% a month earlier.

As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the CPI (Rural, Urban, Combined) on Base 2012=100 for May 2019, stood at 1.86%, 4.51% and 3.05%, respectively, compared to 4.88%, 4.72% and 4.87%, respectively in May 2018. The index value of CPI for combined stood at 142.0. The data also showed that CFPI for all India Rural and Urban for May 2019 stood at (-) 0.22% and 5.87%, respectively, compared to 3.77% and 1.66%, respectively in May 2018. The index value of CFPI for combined stood at 139.0 for the month of May.

Vegetable prices witnessed a sharp rise during May this year at 5.46% as against 2.87% in April 2019. Prices of meat and fish went up by 8.12% from 7.55%, while the inflation print for cereal and products rose to 1.24% in May this year from 1.17%. However, prices of fruits continued to show a deflationary trend with an inflation rate of (-) 5.17% against (-) 4.89% in the preceding month. For fuel and light category, inflation stood at 2.48% as against 2.56% in April, and the retail price of sugar and confectionery declined 0.27%.


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