Retail inflation cools to 6-yr low of 2.82% in May

Food inflation came in at 0.99% in May, down from 1.78% in April and a sharp fall from 8.69% a year ago

- Rhik Kundu

NEW DELHI: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.

Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MOSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.

The data comes just days after the Reserve Bank of India's (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.