Image Source : PTI Retail inflation eases to 7.04% in May from 7.79% in April Retail inflation eased to 7.04 per cent in the month of May, from an eight-year high of 7.79 per cent in April this year. However, it remained above the RBI’s upper tolerance level for the fifth consecutive month, released by the National Statistical Office said on Monday. In May 2021, retail inflation stood at 6.3 per cent. The previous high in the consumer price index (CPI)-based retail inflation was recorded at 8.33 per cent in May 2014. To curb the inflation last month, the RBI in a surprise move raised the repo rate by 40 basis points to 4.40 per cent. The Reserve Bank, which factors in the CPI in its monetary policy, had earlier this month raised the inflation forecast for the current financial year to 6.7 per cent from its previous estimate of 5.7 per cent. As per the RBI’s projections, inflation in the first quarter of the fiscal is likely to be 7.5 per cent and at 7.4 per cent in the following three months. It is expected to decline to to 6.2 per cent and 5.8 per cent in the third and fourth quarters, respectively. The government has tasked the RBI to ensure inflation remains at 4 per cent with margin of 2 per cent on either side. (PTI inputs) Also Read | US inflation hits 40-year high of 8.6% in May Latest Business News
Source link
