Retail inflation shot up to six-month high of 6.3 per cent in May after easing to a three-month low of 4.29 per cent in April, the government data released on Monday showed.
The current CPI figures are way above the Reserve Bank of India's target of above 4 per cent (+/-2%). This time, it has surpassed the RBI's target for the first time after five months.
Food inflation rose to 5.01 per cent in May compared to 2.02 per cent in April.
The wholesale price-based inflation hit an all-time high of 12.49 per cent in May on the back of a spike in prices of manufactured products, crude petroleum, and mineral oils. It touched the double-digit mark of 10.49 per cent in April (2021).
This is the fifth straight month of an uptick in WPI inflation. A low base effect of May last year also contributed to the spike in inflation in May 2021. The WPI inflation stood at (-)3.37% in May 2020.
The RBI in its monetary policy earlier this month kept interest rates unchanged at record lows and committed to maintain an accommodative policy stance to support growth.
The central bank pegged retail inflation at 5.1 per cent in the fiscal ending March 2022, with upside risks from higher commodity prices and re-emergence of higher supply constraints amidst the current phase of lockdowns.
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