NEW DELHI: Retail inflation based on the Consumer Price Index (CPI) rose for the fourth straight month to 3.9% in May from 3.5% in April due to accelerating food prices, data released by NSO showed on Friday.
The food index rose 4.8% in May, higher than 4.2% in the previous month.Despite a startling increase in retail fuel prices over the past month against the backdrop of ongoing conflict in West Asia, fuel inflation remained under control at 0.8% in May, although slightly higher than 0.7% in April.Economists expect the passage to become visible in June. Deepti Deshpande, chief economist at Crisil, said food inflation rose due to continuing high temperatures, which led to higher prices of vegetables, dairy products and eggs.“Part of the estimated 36 basis points (100 basis points equals one percentage point) direct impact on CPI from the cumulative rise of Rs 7.5 per liter in fuel prices is already evident and the remaining pass-through is expected in June,” it said.The core inflation rate, after excluding volatile food and fuel components, is around 4%.
