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Below are Perspective on CPI numbers by Ms. Rajani Sinha, Chief Economist & National Director – Research, Knight Frank India.

“After 5 months of staying within RBI’s comfort band, the CPI inflation for May 2021 has again shot up above 6%. The surge in inflation has been across all components including, food, fuel and core inflation. The WPI inflation has also inched up sharply in last few months in response to the rise in global commodity prices. For businesses, apart from raw material prices, labour price has also gone up in the last few months due to labour shortage. While the demand force in the economy remains weak currently, the concern is that the supply-side factors could continue to put upward pressure on inflation going forward.”

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