Retail inflation for industrial workers in India eased to 3.86 per cent in May 2024, compared to 4.42 per cent in the same month last year, according to a statement from the Ministry of Labour. The Consumer Price Index-Industrial Workers (CPI-IW) stood at 3.87 per cent in April 2024.
The Labour Ministry's statement highlighted that the year-on-year inflation rate for May 2024 moderated to 3.86 per cent, down from 4.42 per cent in May 2023. The All-India CPI-IW for May 2024 saw a slight increase, rising by 0.5 points to reach 139.9 points, up from 139.4 points in April 2024.
Within the CPI-IW, the food and beverages group experienced an increase, rising to 145.2 points in May from 143.4 points in April this year. However, the fuel and light segment saw a decline, dipping to 149.5 points in May from 152.8 points in April 2024.
The Labour Bureau, an office attached to the Ministry of Labour & Employment, compiles the CPI-IW monthly based on retail prices collected from 317 markets across 88 industrially significant centers in the country.
In an another development, consumer price inflation in India is expected to have increased in June 2024, halting a five-month decline. A Reutes survey of economists attributed this uptick primarily to a surge in vegetable prices due to crop damage caused by severe weather conditions. The prices of tomatoes, onions, and potatoes rose sharply last month due to extreme heat and heavy floods in northern states, disrupting agricultural production.
The Reuters poll, conducted from July 5-9 and involving 54 economists, forecasted that consumer price inflation rose to 4.80 per cent year-on-year in June, up from 4.75 per cent in May. Food items constitute approximately half of the total CPI basket. Core inflation, which excludes volatile items like food and energy and is considered a more reliable indicator of domestic demand, was projected to reach 3.10 per cent in June, according to the median estimate from a smaller group of 19 economists. While the Indian statistics agency does not officially publish core inflation figures, economists derive estimates from CPI data.