The RBI expects retail inflation could accelerate to 3.5 percent to 4.5 percent in October-December
Vegetable prices have risen sharply following erratic monsoon rains
Retail inflation hit a historically low level of 1.54% in June
Industrial output growth slumped to 1.7% in May
At policy review last week, RBI left key interest rates unchanged, but lowered inflation projections
New Delhi, 12 JuneRetail inflation for the month of May hit another series-low, coming down to 2.18 per cent. Consumer Price Index-based inflation (CPI) was 2.99 per cent in April and 5.76 per cent in May last year. Food prices entered a deflationary zone in May, with the Consumer Food Price Index at minus 1.05 per cent, as against 0.61 per cent this April and 7.47 per cent in May last year, official data showed on Monday.The headline figure of 2.18 per cent is the lowest since the series was introduced with a new base year in January 2015. This is a second month that retail inflation has hit a series-low. "The decrease can be ascribed to a decline in food prices, owing to falls in the price of cereals, fruits, egg, fish, meat, sugar and spices," said Madan Sabnavis, chief economist at CARE Ratings.The steepest fall was in pulses, at minus 19.45 per cent, and vegetables at minus 13.44 per cent. The foods and beverages category, 46 per cent of the CPI index, showed minus 0.22 per cent .
RBI might still opt to hold repo rate: Experts
CPI inflation stood at 5.47%
RBI is concerned food prices may increase due to poor monsoon, forcing interest rates to rise
One of the plausible reasons could be the impact of demonetisation on the supply chain
Consumer Price Index-(CPI) based inflation for the month of January 2017 plunged to 3.17%
Food inflation was 1.37% last month, lower than a revised 2.03% in November
Food inflation was 3.88%, down from 5.91% in August; makes room for more rate cut
Retail inflation was 5.05 per cent in August
IIP revives to grow at 8-month high
The country's retail inflation for July was the highest in 19 months, with rises sustained in vegetables and pulses
Retail inflation is expected to rise to 5.90% in July from a year ago, up from 5.77% in the previous month, a poll of nearly 30 economists showed
Urban, rural areas show contrasting picture