Food prices push up retail inflation to 3.9% in May, highest in 16 months
India's retail inflation, measured by the Consumer Price Index (CPI), increased to 3.9% in May, up from 3.5% in April. This surge is primarily attributed to rising food prices, with the Consumer Food Price Index (CFPI) inflation reaching 4.8% in May, compared to 4.2% in April. This marks the fastest pace of retail price increase since January 2025 (4.06%), making the May figure the highest in 16 months. The current inflation rate is just 0.07% short of the RBI's target of 4%, driven by increases in cereal, tomato, and fuel prices, while onion deflation slowed.
Key Points
- India's retail inflation, measured by CPI, rose to 3.9% in May, primarily due to an increase in food prices.
- The Consumer Food Price Index (CFPI) inflation increased to 4.8% in May from 4.2% in April.
- This inflation rate is the highest in 16 months, surpassing the 3.5% recorded in April.
- The current inflation is very close to the RBI's target inflation rate of 4%.
- Rising prices of cereals, tomatoes, and fuel, along with slowing deflation in onions, contributed to the overall increase.
Exam Facts
- Retail inflation (CPI) increased to 3.9% in May.
- The inflation rate in April was 3.5%.
- Consumer Food Price Index (CFPI) inflation was 4.8% in May.
- The May figure is the highest in 16 months, last seen in January 2025 (4.06%).
- The RBI's target inflation rate is 4%.
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