The retail inflation rate in India stayed below 4 per cent, showcasing the country’s strong macroeconomic fundamentals and effective price stability measures, as per the PHDCCI industry chamber. In May, the Consumer Price Index (CPI) recorded a 3.93 per cent inflation rate, slightly up from April’s 3.48 per cent but still below the Reserve Bank of India’s 4 per cent target.
The data reveals that inflation remains well-controlled, with core consumption categories showing moderation. Food inflation increased to 4.78 per cent in May from 4.20 per cent in April, driven by higher prices of tomatoes, ginger, and certain dry fruits. On the other hand, prices of potatoes, peas, and some consumer durables saw significant declines, easing overall inflationary pressures.
PHDCCI President Rajeev Juneja noted that while food prices are subject to seasonal variations, overall inflation remains contained, supporting consumer purchasing power. The industry expects that stable energy prices, improved supply chains, and favorable economic conditions will continue to aid inflation management efforts in the upcoming months.
