India's May Retail Inflation Hits 3.93% as Fuel and Food Costs Drive 15-Month High
Updated
Updated · The Hindu · Jun 15
India's May Retail Inflation Hits 3.93% as Fuel and Food Costs Drive 15-Month High
3 articles · Updated · The Hindu · Jun 15
Summary
India’s retail inflation rose to 3.93% in May, still just below the RBI’s 4% target but the highest in the current CPI series and about a 15-month high on the older basis.
Food inflation accelerated to 4.78% from 4.20%, while fuel pass-through strengthened after four petrol and diesel price hikes from mid-May pushed goods transport inflation up 7.63%.
Commercial LPG prices, up about ₹1,300 per 19-kg cylinder since February, appeared in services inflation as restaurants and accommodation reached 5.75%; a ₹29 domestic LPG increase this month may lift June food prices further.
core inflation stayed relatively contained at about 3.8%-3.9%, but the RBI kept a neutral stance as elevated fuel costs could persist even if crude eases.
That risk is reinforced by wholesale inflation, which later data showed at 9.68% in May, suggesting producers are still facing a much sharper price shock than consumers.