Inflation June 2023: Retail Inflation Eases to 4.25% in May
The retail inflation rate in India has decreased in the last month, providing relief amidst the ever-increasing inflation. According to government data, retail inflation eased to 4.25% in May due to softening prices of food and fuel products. This is the lowest level of inflation rate in the last 25 months. In April 2021, retail inflation was recorded at 4.23%.
Inflation Fell for the Fourth Consecutive Month
The retail inflation rate in India has fallen for the fourth consecutive month, according to government data. In May, the inflation rate fell from 4.70% in April to 4.25%. A year ago, in May 2022, the retail inflation rate was at 7.04%. This is the third consecutive month when retail inflation is at the satisfactory level of the Reserve Bank of India. The government has asked the Reserve Bank to keep retail inflation at 4% with a range of 2%.
Fall in Prices of Food Products and Fuel
The biggest reason for the decline in retail inflation in May is the fall in the prices of food products and fuel. Food inflation stood at 2.91% in May, while it was 3.84% in April. Inflation in the fuel and light segment also came down to 4.64%, while it was 5.52% in April.
RBI’s Decision to Keep Policy Rates Stable at 6.5%
The Reserve Bank of India has decided to keep the repo rate constant at 6.5% last week. The Reserve Bank had estimated retail inflation to be 5.1% for the current financial year. The government has entrusted the Reserve Bank with the task of keeping the retail inflation at 4% with a variation of 2%.
This decrease in retail inflation is good news for consumers as it will reduce the burden on their pockets. With the RBI’s decision to keep policy rates stable, it is expected that the inflation rate will remain under control in the coming months.
Follow DelhiBreakings on Google News
Superfast News Coverage by DelhiBreakings.com team.
For Superfast national news and Delhi Breaking Stories visit us daily at https://delhibreakings.com
