Reaction on CPI data: The consumer food price index eased to 2.91% in May from 3.84% in April Says Raghvendra Nath, Ladderup Wealth Management Private
Below Quote On CPI data By Mr. Raghvendra Nath, Managing Director – Ladderup Wealth Management Private Limited
“India's consumer price index (CPI) eased sharply to 4.25% in May, hitting a 25-month low, helped by a softer rise in food prices and a favourable base effect. It has come under the Reserve Bank of India's upper tolerance limit of 6% for the third month in a row. This month's CPI declined from 4.7% recorded in April 2023 and 7.04% in the year-ago period (May 2022). The consumer food price index eased to 2.91% in May from 3.84% in April. Rural inflation in May stood at 4.17% while urban inflation stood at 4.27%. However, CPI inflation remains above the RBI's medium-term target of 4% for the 44th month in a row.
RBI projected CPI inflation for FY24 at 5.1% while announcing the second monetary policy committee stance for the fiscal on June 8, when it left the interest rates unchanged for the second time. RBI Governor Shaktikanta Das led the rate-setting panel has predicted inflation at 4.6% for Q1 FY24.”
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