India's retail inflation moderates to 7.04% in May
New Delhi, June 13, 2022
India's retail inflation moderated to 7.04 per cent from 7.79 per cent in the previous month, but it remained above the Reserve Bank of India's (RBI) upper tolerance limit of 6 per cent for the fifth consecutive month.
The inflation rate based on the Consumer Price Index (General) was 6.30 per cent in the same month last year.
Analysts attributed the high inflation rate to the high fuel and food prices against the background of the Russia-Ukraine war.
Wholesale inflation in the country has been in double digits for over a year now.
According to the data released today the retail inflation rate was 7.01% in rural areas and 7.08% in urban areas, adding up to a combined rate of 7.04% in May 2022.
The inflation rate based on the Consumer Food Price Index (CFPI) stood at 7.76% in rural areas and 8.20% for urban areas, making for a combined rate of 7.97% in May 2022, as compared to 8.31% in April 2022 and 5.01% in May 2021.