Inflation Drops to 6-Year Low of 2.82% in May

Retail inflation dipped to an over six-year low of 2.82 per cent in May due to subdued food prices, remaining below the RBI's median target of 4 per cent for the fourth consecutive month, according to government data released on Thursday.

- TDG NETWORK

Consumer Price Index (CPI)-based retail inflation was 3.16 per cent in April and 4.8 per cent in May 2024. The previous low was in February 2019 at 2.57 per cent.

On easing inflation, the Reserve Bank effected a jumbo rate cut of 50 basis points last week, taking the total to 100 bps since February.

Food inflation was 0.99 per cent in May, significantly lower from 8.69 per cent in the year-ago month, according to the National Statistics Office (NSO) data.