Retail inflation slight down to 7.04% in May 2022
Team Ambitiousbaba are here with a Current Affairs Special Series. In this series, candidates will be introduced to current affairs topics daily, which will not only improve their general awareness but also will ensure that the candidates do not lack in any current affairs topic. Today’s Current Affairs topic is “Retail inflation slight down to 7.04% in May 2022“
India’s retail inflation descended to 7.04% on an annual basis in May from 7.79% in April owing to relieving food prices in the month of May.
The overall food inflation rose by 7.97% this month as against 8.31% last month and 5.01% in the corresponding period of last fiscal (FY22).
Consecutively, the headline inflation decelerated to 0.94 per cent in May from 1.43 per cent in April.
The CPI-based inflation has broken the upper limit of RBI’s tolerance band, ranging from 2-6%, for the fifth consecutive month.
Rising prices in different commodities:
However, with the rising crude oil prices and supply-chain disruptions induced by the Russia-Ukraine war, the effect is expected to be short-lived.
Rising prices of vegetables are creating a cause for concern because they jumped to 18.26 % for May over the same period last year. The sequential rise has been at over 5%.
Fuel and light inflation went up 9.54 per cent in May compared to same period last year. But fuel and light inflation slowed down to 1.4% in May from 3.1% in April.
The data containing all these numbers arrives a few days after the RBI revised India’s inflation projection to 6.7% from the earlier approximation of 5.7% in the Monetary Policy Committee’s (MPC) June meeting based on the increase in commodity prices globally.
These factors, along with an average crude oil price (Indian basket) of US$105 per barrel and a normal monsoon in 2022, lead to inflation forecasts of 6.7% in 2022-23, with Q1 at 7.5%; Q2 at 7.4%; Q3 at 6.2%; and Q4 at 5.8%.
The government is waiting for assisting with inflation management in order to keep monetary tightening to a minimum, as a sudden spike in interest rates might help to pace the economic recovery.
Question & Answer:
Q1. What percent of India’s retail inflation has been recorded for May 2022?
Q2. The overall food inflation increased to what percent?
Q3. What is the range of RBI’s tolerance band?
Ans. 2% to 6%
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