New Delhi, June 12 (FN Bureau) Retail inflation based on Consumer Price Index (CPI) eased marginally lower 4.75 percent over 4.83 percent in the previous months, according to government data released on Wednesday. Year-on-year inflation rate based on all India Consumer Price Index (CPI) number is 4.75 percent (Provisional) for the month of May, 2024. Corresponding inflation rate for rural and urban is 5.28 per cent and 4.15 percent, respectively, an official statement by the Ministry of Statistics & Programme Implementation said. All India inflation based on General CPI is lowest for the month of May 2024 after May 2023.
It is less than 6 percent since September 2023, it added. According to data, Spices has shown a considerable decline at sub-group level in year-on-year inflation as compared to April 2024. Among the groups, inflation corresponding to ‘Clothing & Footwear’, ‘Housing’ and ‘Miscellaneous’ has decreased since last month. According to data released by the National Statistical Office (NSO), inflation in the food basket came down marginally to 8.69 percent in May from 8.70 percent in April. Headline inflation has seen sequential moderation since February 2024, however in a narrow range from 5.1 percent in February to 4.8 percent in April 2024.
The government has desired to keep inflation at 4 percent and has accordingly asked the Central Bank to be vigil and ensure the CPI inflation remains at 4 percent with a margin of 2 percent on either side. Earlier this month, while announcing the bi-monthly monetary policy, the RBI projected the CPI inflation for 2024-25 at 4. 5 percent, with Q1 at 4.9 percent, Q2 at 3.8 percent, Q3 at 4.6 percent, and Q4 at 4.5 percent.