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Retail inflation may ease below 3% in May
Hindustan Times East UP
|June 07, 2025
Higher supplies of tomatoes, onions, and potatoes, softer global gold prices, and a favourable base effect may have eased retail inflation further to 3% or below in May, the lowest since April 2019, according to economists.
NEW DELHI: That would mark a fourth consecutive month of sub-4% print.
Meanwhile, the Reserve Bank of India (RBI) on Friday lowered its inflation projection for the April-June quarter to 2.9% from its earlier projection of 3.6%.
The consumer inflation reading for May is likely to fall to 2.7% primarily due to a drop in food inflation, Dipanwita Mazumdar, economist at Bank of Baroda, said in a recent note.
"Even globally, food and energy prices remain in favour. Q1FY26 also has the advantage of a favourable base for the inflation print," Mazumdar said, adding that "inflationary pressures remain skewed to the downside".
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