Retail inflation | Photo: PTIRetail inflation declined to a 25-month low of 4.25 per cent in May mainly on account of softening prices of food and fuel items. Inflation based on the Consumer Price Index (CPI) stood at 4.7 per cent in April and 7.04 per cent in May 2022. At 4.25 per cent, retail inflation is the lowest since April 2021 when it was 4.23 per cent. The government has tasked the central bank to ensure retail inflation remains at 4 per cent with a margin of 2 per cent on either side. Last week, the Reserve Bank kept policy rates unchanged at 6.5 per cent and projected retail inflation for the current fiscal to average at 5.1 per cent, with June quarter inflation pegged at 4.6 per cent.

Source: dna June 12, 2023 17:01 UTC