CPI Inflation data May: Retail inflation rose to 6.3 per cent in May. According to government data released on Monday, due to increased prices of food items, it has gone beyond the level told to RBI. In April, the inflation-based Consumer Price Index (CPI) stood at 4.23 per cent. According to data released by the National Statistical Commission (NSO), inflation in food articles stood at 5.01 per cent in May, which is much higher than 1.96 per cent in the previous month.
Retail inflation is important for RBI
The government had asked the Reserve Bank to keep retail inflation at 4 per cent, with a margin of two per cent. RBI looks at retail inflation while deciding on its monetary policy. It did not change the inflation rate earlier this month.
The central bank had projected the CPI-based inflation to be at 5.1 percent during 2021-22. It was estimated to be 5.2 percent in the first quarter, 5.4 percent in the second quarter, 4.7 percent in the third quarter and 5.3 percent in the fourth quarter.
The economy of the country is in constant crisis. The country’s GDP continues to decline. In such a situation, the rising inflation rate makes it more difficult for the common man.
Let us inform that inflation based on wholesale prices reached a record level in May 2021 last month. According to the data released by the Central Government on Monday, June 14, the WPI inflation in May was at 12.94 percent. However, there is also a low base effect behind its excess i.e. last year in May 2020 it was very less, due to which the figures have increased this time. For full news read here- Wholesale inflation reached a record level in May due to expensive oil, inflation increased for the fifth consecutive month