Retail inflation accelerated to a six-month high of 6.3 per cent in May, breaching the upper tolerance limit of the inflation target range set by the Reserve Bank of India’s monetary policy committee.
Data released by the Ministry of Statistics and Programme Implementation, on Monday, showed that higher inflation was driven by higher prices across sectors — including food, fuel, transportation and communication.
Retail inflation, measured by the consumer price inflation (CPI) index, is the main price gauge that the RBI tracks.The jump could also be attributed to the high base of May 2020 (at 6.27 per cent), on the back of the supply-side disruption caused by the lockdown.
In April, retail inflation had eased to a three-month low of 4.29 per cent, given the localised lockdowns in the aftermath of the second wave, as well as a favourable base effect.
