Retail inflation may ease below 3% in May

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.

- Rhik Kundu

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".