India’s inflation rate fell to a 12-month low of 4.75 percent in May. Fuel and cooking oil prices have come down, which is likely to ease the burden on people’s household budgets. These figures were released by the Ministry of Statistics on Wednesday. Inflation in April was at an 11-month low of 4.83 percent.
Consumer Price Index (CPI) inflation stood at 4.83 percent in April. However, the Consumer Price Food Index or CPFI remained almost steady at 8.69 percent as against 8.7 percent a month ago.
The Ministry of Statistics said that the prices of spices, clothing, shoes, housing etc. also recorded a decline. In comparison to the previous month, prices related to clothing and footwear, accommodation have decreased, while prices of spices have seen a significant year-on-year decline compared to April 2024.
Edible oil prices declined in the month of May and fell by 6.7 percent during the month. Spice prices fell by 11.4 percent to 4.27 percent in May compared to April. However, the price of pulses remained stable at 17.14 percent. Vegetable prices registered an increase of 27.33 percent, but this growth is slightly lower than April’s 27.8 percent.
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An increase of 8.65 percent was recorded in foodgrain prices. Food inflation was 7.87 percent in April, compared to 1.5 percent in April last year. Food inflation recorded an increase of 8.52 percent last month i.e. May.
The country’s inflation rate has been declining for several consecutive months and it came down to 4.85 percent in March. It was 5.1 percent in January and 5.09 percent in February this year.
It is now close to the Reserve Bank of India (RBI) target, but still the RBI has not cut interest rates.
