The annual retail inflation of India has now steadied at 4.75 percent in May, which decreased from 4.83 percent in April announced govt. data on Wednesday.
As per the data, there has been a marginal decline from April’s 4.83 per cent to 4.75 percent in May. It is indeed lesser than retail inflation recorded on May 2023.
Furthermore, the data also displays different inflation rates of urban and rural areas respectively. The retail inflation of rural area stands at 5.28 per cent, while urban area stands at 4.15 per cent.
These figures illustrate an ongoing pattern of moderate inflation in urban areas, contrasting with a higher rate of price hikes in rural area.
But overall, the CPI inflation is lesser than what was recorded in the month of May in previous year. Thus, maintaining the inflation under control.
However, the CEPI (Consumer Food Price Index) this year is little higher than general CPI, which now stands at 8.69 per cent as of May 2024.
Thus, highlighting huge increase in food prices, especially in urban areas. As a result, urban people are facing the brunt of food cost prices. Even, the CPI general index, witnessed the increase from April’s 0.48 per cent to May 2024.The rural index experienced a rise of 0.42 percent, while the urban index increased by 0.49 percent.
At the same period, the CFPI index, which tracks food prices, witnessed an increase of 0.73 percent, with rural and urban areas increasing by 0.69 percent and 0.87 percent, respectively.
Thus suggesting, ongoing market adjustments, which is influenced by both seasonal patterns and economic factors. Thus affecting price trends.