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Retail inflation drops to over a 2-year low at 4.25% in May

Retail inflation drops to over a 2-year low at 4.25% in May: India's retail inflation has decreased to a 25-month low of 4.25% in May due to falling food prices, which is in line with the predictions.

Mahesh Kumar June 13th, 2023 04:56 pm

Retail inflation drops to over a 2-year low at 4.25% in May

India’s retail inflation has decreased to a 25-month low of 4.25% in May due to falling food prices, which is in line with the predictions of economists. This brings the consumer price index-based (CPI) inflation closer to the Reserve Bank of India‘s medium-term target of 4%.

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What does drop in retail inflation incline for the Indian economy?

The drop in retail inflation comes as a relief for the central bank, which kept key rates unchanged in its last policy review and is likely to pause it’s rate hikes for the rest of the year.
However, economists have cautioned that the trend of easing inflation is subject to the impact of El Nino on the monsoon.
On the other hand, government data revealed that the Index of Industrial Production (IIP) increased in April to 4.2% from 1.1% in March.

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Mahesh Kumar

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Working as an SEO Manager at Adda247, I bring over 10 years of experience in Search Engine Optimization (SEO) and digital marketing. I specialize in driving organic growth through data-driven strategies, including keyword research, on-page SEO, off-page optimization, and technical SEO. My area of expertise in the EdTech sector, specifically focusing on competitive exams such as Bank, SSC, Railway, UPSC, and various State Government job examinations.