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Consumer-price based inflation fell in May for a third straight month, and to a 15-month low. However, it remained at a high level, of 9.31 per cent, official data showed on Wednesday. In April, inflation was 9.39 per cent.
However, food inflation (including beverages) inched up to 10.65 per cent in May, compared to 10.61 per cent the previous month, pushed by a surge in the rate of price rise in vegetables. This, coupled with the rupee's depreciation against the dollar, might make the Reserve Bank of India cautious on cutting the policy rate in its monetary review later this month to propel sagging growth, analysts said.
A number of items - cereals, eggs, fish, meat, non-alcoholic beverages and prepared meals - continued to see double-digit inflation. However, inflation in pulses and sugar fell to single digits. Inflation in fruits also came down sharply.
Inflation in cereals remained high at 16.29 per cent in May, even as it came down from 16.65 per cent in April. Similarly, the rate of price rise in eggs, fish and meat declined in May vis-a-vis April. However, it still remained in double digits at 12.52 per cent, compared to 13.6 per cent.
Inflation in pulses declined to 9.59 per cent in May from 10.91 per cent; sugar to 9.21 per cent from 10.49 per cent. Vegetables prices rose 9.78 per cent in May compared to just 5.43 per cent in the previous month.
Fruits' inflation fell to 6.01 per cent from eight per cent.
Elsewhere, inflation in the fuel and lighting category rose to 8.55 per cent from 8.10 per cent. Clothing, bedding and footwear saw the rate of rise easing to 9.72 per cent from 10.22 per cent.
There is a wide range of difference between consumer price inflation and wholesale price index (WPI)-based inflation these days. WPI inflation data is to be issued on Friday.
