India’s retail inflation shot up to six-month high of 6.3 per cent in May, after easing to a three-month low of 4.23 per cent in April, according to the government data released on Monday.
Inflation, based on Consumer Price Index (CPI), has breached the Reserve Bank of India’s (RBI) target range for the first time after five months. The RBI is mandated to maintain the crucial number at 4 per cent in the medium term, with a 2 percentrage point margin on either side as part of its inflation target.
A Reuters poll estimated the inflation rate to be 5.30 per cent in May.
Food inflation accelerated to 5.01 per cent in May, as compared to 1.96 per cent in April, while core inflation stood at 6.6 per cent.
