India Inflation Eases To 2.82%, Lowest Since February 2019

(RTTNews) - India's consumer price inflation eased further in May to the lowest level in more than six years, largely due to a slower rise in food prices, official data revealed on Thursday.

Consumer price inflation eased more-than-expected to 2.82 percent in May from 3.16 percent in April. The expected rate was 3.0 percent.

Moreover, this was the lowest inflation rate since February 2019, when prices had risen 2.57 percent.

Food inflation softened to 0.99 percent, the lowest since October 2021, from 1.78 percent a month ago. This significant decline was mainly attributed to the decline in inflation of pulses and products, vegetables, fruits, cereals and products, household goods and services, sugar and confectionery, and eggs, and the favorable base effect.

The annual price growth in fuel and light moderated to 2.78 percent from 2.92 percent. Meanwhile, housing inflation rose to 3.16 percent from 3.06 percent.

On a monthly basis, consumer prices moved up 0.21 percent in May.

In the previous week, the Reserve Bank of India lowered its interest rates by a sharper-than-expected 50 basis points, marking the third consecutive reduction as policymakers focused on propelling growth amid the softening inflation, but the central bank shifted its monetary policy stance to neutral, signaling a pause ahead.