The combined push of food and fuel prices continued to drive up retail inflation in India in May towards the 5 percent-mark, official data showed on Tuesday.
As per numbers furnished by the Central Statistics Office, the consumer price indexed (CPI) inflation in May stood at 4.87 percent, registering more than double growth over the 2.18 percent recorded in the same month last year, and up from the 4.58 percent recorded in April 2018.
The consumer food price index (CFPI) in May moved up to 3.1 percent over the 2.8 percent logged in the previous month.
The annual CPI in rural areas in May ruled higher at 4.88 percent, while in urban India, it rose by 4.72 percent.
As per the data, the retail inflation rate on a year-on-year basis rose due to higher prices of food items like vegetables, milk-based products, eggs, meat and fish, as well as increased fuel rates.
On a sub-category basis, vegetables in May became costly by 8.04 percent, while prices of milk-based products rose by 3.2 percent.
Other notable sub-categories such as cereals became dearer by 2.78 percent and meat and fish recorded a rise of 3.53 percent.
The category of food and beverages during the month under consideration recorded a rise of 3.37 percent over the same period last year.
Among non-food categories, the fuel and light segment’s inflation rate accelerated to 5.8 percent in May.
Last week, following a cycle of rate cuts begun in January 2015, the Reserve Bank of India (RBI) raised its key interest rate for the first time by 25 basis points, to 6.25 percent, responding to concerns on inflation from surging global crude oil prices.
The RBI also revised upwards the retail inflation range to 4.8-4.9 percent in the first half of 2018-19, and to 4.7 percent in the second half, including the impact of house rent allowance for central employees, and with risks on the upside.