Retail Inflation In May Eases To 12-Month Low Of 4.75 Per Cent From 4.83 Per Cent In April

Retail Inflation in May: Food inflation, which accounts for nearly half of the overall consumer price basket, jumped 8.69 per cent YoY in May, compared with an 8.70 per cent rise in the previous month

Retail Inflation in May: Retail inflation in India slightly eases to eases to 12-month low of 4.75 per cent in May from 4.83 per cent in April, according to data released by the Ministry of Statistics and Programme Implementation on Wednesday. As per NSO data, year-on-year (YoY) inflation rate based on all India Consumer Price Index (CPI) number is 4.75 per cent (provisional) for May, 2024. Corresponding inflation rate for rural and urban is 5.28 per cent and 4.15 per cent, respectively.

Food inflation, which accounts for nearly half of the overall consumer price basket, jumped 8.69 per cent YoY in May, compared with an 8.70 per cent rise in the previous month. Food prices have been rising at more than 8 per cent YoY since November 2023.

The inflation rate for cereals was 8.69 per cent YoY in May, compared with 8.63 per cent in the previous month and pulses prices rose 17.14 per cent, compared with 16.84 per cent in April. Vegetable prices jumped 27.33 per cent in May, against 27.8 per cent in the previous month.

The price data are collected from selected 1,114 urban markets and 1,181 villages, covering all states/ UTs. During May 2024, NSO collected prices from 100.0 per cent villages and 98.5 per cent urban markets, while the market-wise prices reported therein were 89.2 per cent for rural and 92.7 per cent for urban.

The government has tasked the Reserve Bank of India (RBI) to ensure the CPI inflation remains at 4 per cent with a margin of 2 per cent on either side. In the latest RBI MPC, the central bank projected CPI inflation at 4.5 per cent for FY25. The MPC announced that the CPI inflation in Q1 at 4.9 per cent, Q2 at 3.8 per cent, Q3 at 4.6 per cent, while Q4 at 4.5 per cent. In his address, Governor Shaktikanta Das said that the inflation growth balance is moving favourably. "Growth is holding firm. Inflation continues to moderate, mainly driven by the core component, which reached its lowest level in the current series in April 2024." He stated the deflation in fuel prices is ongoing. Food inflation, however, remains elevated.

The next date of release for June 2024 CPI is July 12, 2024 (Friday).

Industrial Output Grows 5% In April

India's industrial production grew 5 per cent in April this year mainly due to good show by mining and power sectors, according to official data released on Wednesday. The factory output measured in terms of the Index of Industrial Production (IIP) witnessed a growth of 4.6 per cent in April 2023.

India's Index of Industrial Production grew by 5 per cent in April 2024, an official statement said.

The data released by the National Statistical Office (NSO) showed that the manufacturing sector's output grew 3.9 per cent in April 2024 against 5.5 per cent in the year-ago month. In April this year, mining production rose 6.7 per cent and power output increased 10.2 per cent.