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 of economists. This brings the consumer price index-based (CPI) inflation closer to the Reserve Bank of India‘s medium-term target of 4%.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

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.

Find More News on Economy Here