Retail inflation eased to 7.04 per cent in May, mainly on account of softening food and fuel prices as government as well as RBI stepped in to control spiralling price rise by way of duty cuts and repo rate hike.
However, the inflation print stayed above the Reserve Bank’s upper tolerance level of 6 per cent for fifth month in a row. The Consumer Price Index (CPI) based retail inflation was 7.79 per cent in April. In year-ago month of May 2021, retail inflation stood at 6.3 per cent.
Inflation in the food basket in May 2022 was at 7.97 per cent, down from 8.31 per cent in previous month, as per data released by National Statistical Office (NSO) on Monday.
