Retail inflation eases to 7.04% in May, but remains above RBI's target band

Inflation in the food basket was 7.97% in May 2022, marginally lower than 8.31% in the previous month, as per the data released by the National Statistical Office

Retail inflation eased to 7.04% in May, mainly on account of softening food and fuel prices as the government as well as the RBI stepped in to control spiralling price rise by way of duty cuts and repo rate hike.

However, the inflation print stayed above the Reserve Bank's upper tolerance level of 6% for the fifth month in a row.

The Consumer Price Index (CPI) based retail inflation was 7.79% in April. In the year-ago month of May 2021, retail inflation stood at 6.3%.

Inflation in the food basket in May 2022 was at 7.97%, down from 8.31% in the previous month,