May retail inflation to cool down but remain above MPC's target: Poll

Reuters poll of 45 economists shows CPI for June is likely to come in at 7.1%; Excise cuts on fuel, duty cuts on other items may have helped cool down inflation

Consumer Price Index-based inflation (CPI) for the month of May 2022, expected later today, may have come down from the eight-year high of 7.8 per cent in April. It is, however, still anticipated to be above the Monetary Policy Committee’s medium-term inflation target of 4 (+/-2) percent for the fifth straight month.

According to a poll of 45 economists by news agency Reuters, CPI for June is expected to come in at 7.1 per cent, justifying the MPC’s recent rate hikes. The excise duty cuts on petrol and diesel and duty cuts on other items may have played a part in