12.06.2019 14:24:05

India Inflation Accelerates Further

(RTTNews) - India's consumer price inflation accelerated further in May, in line with economists' expectations, figures from the National Statistical Office showed on Wednesday.

The consumer price index rose 3.05 percent year-on-year in May after a 2.99 percent increase in April, which was revised from 2.92 percent. In May 2018, inflation was 4.87 percent. Food price inflation accelerated to 1.83 percent from 1.10 percent. On a month-on-month basis, the CPI 0.57 percent in May and food prices grew 1.24 percent.

The Reserve Bank of India cut the key interest rate by a quarter basis point this month, the third in a row, to its lowest level since 2010 and tweaked its monetary policy stance to accommodative from neutral.

Considering the impact of rate cuts and expectations of a normal monsoon, the bank revised down the path of CPI inflation to 3.0-3.1 percent for the first half of the fiscal 2020 and to 3.4-3.7 percent for the second half.

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