New Delhi. Retail Inflation (Consumer Price Index i.e. CPI) came to the lower level after 2012 due to the decline in prices of vegetables, pulses etc. food items. Retail inflation stood at 2.18% in May, while in April it was 2.99%. The retail inflation in May last year was 5.76%. The impact of fall in clothing, houses, fuel prices was also on inflation.
This figure of retail inflation is significantly lower than the medium term threshold of 4% of the Reserve Bank of India (RBI). It will increase the pressure of reducing interest rates in the next monitory policy on RBI.
There was no change in the repo rates in the second bilingual monitoring policy of the RBI earlier this month.
Food items reduction showing bearing
– The consumer food price index (CPPI) in May went into the negative territories of -1.05%, while in May 2016 it was 7.47%.
– Rural CFPI – 0.60% and Urban CFPI – at a level of %. At the same time, a reduction of 1.9% was recorded in the Pulses Group Index.
– Although the reduction of 13.44 percent was recorded in vegetables prices in May. While the prices of pulses and other food items declined by 19.45 per cent.
Frequent third month decreasing inflation
– The third month reduction has been recorded in retail inflation in May. The retail inflation component in April was 2.99%, while in March it was 3.89%.
Reduction in both Urban and Rural Inflation
- Do differently talk about Urban and Rural Inflation, the reduction in both is recorded. The Urban Inflation component came at 2.13 per cent, while in April it was 3.03 per cent. While the Rural Inflation came to the level of 2.30 per cent in May, which was at the level of 3.02 per cent in April.
