India’s retail inflation, measured by the Consumer Price Index (CPI), fell to 2.82% in May, marking its lowest level in over six years. The decline was primarily driven by moderating food prices, offering relief to consumers and policymakers alike.
🔴 Key Highlights:
- May CPI inflation stood at 2.82%, down from 3.16% in April, according to the Ministry of Statistics & Programme Implementation (MoSPI).
- Food inflation dropped sharply to 0.99%, its lowest since October 2021, reflecting a decline in vegetable, fruit, cereal, and sugar prices.
- Rural inflation eased to 2.59%, while urban inflation declined to 3.07%, showing a broad-based moderation.
- Housing inflation edged up slightly to 3.16%, while health and education inflation remained stable.
- The Reserve Bank of India (RBI) recently cut the repo rate by 50 basis points, citing low inflation as a key factor in its decision.
📢 Expert Opinions:
“The marked softening of headline and food inflation in May is mainly attributed to a decline in the prices of pulses, vegetables, fruits, cereals, and household goods,” said Hemant Jain, President of PHDCCI.
⚠️ Strategic Impact:
- Lower inflation could boost consumer spending, supporting economic growth.
- RBI’s monetary policy stance may remain accommodative, with further rate cuts dependent on inflation trends.
👉 What do you think? Will inflation remain low, or could rising fuel prices reverse the trend? Drop your thoughts in the comments!
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