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Retail inflation accelerated in May to a six-month high of 6.30 per cent as fuel and food prices rose at a higher pace, putting pressure on the central bank to tame prices amid a faltering economic recovery.
Retail inflation in May breached the RBI’s comfort level on the back of costlier food items. According to data released by the National Statistical Office (NSO), inflation in the food basket was 5.01 per cent in May, significantly up from 1.96 per cent in the preceding month. The consumer price index (CPI) based inflation stood at 4.23 per cent in April.
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The previous high in retail inflation was 6.93 per cent in November 2020.