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 India's retail inflation rate eased slightly in May, partly helped by fall in fuel prices although food prices remained elevated, government data showed on Wednesday.

Annual retail inflation in May was 4.75%, down from 4.83% in April and lower than the 4.89% forecast by 50 economists polled by Reuters.

COMMENTARY:

YUVIKA SINGHAL, ECONOMIST, QUANTECO RESEARCH, NEW DELHI

"This CPI inflation print broadly entails the ongoing story of comfort on fuel and core remaining intact, alongside price pressures on food."

"The intense heat waves across several parts of the country meant no letup in the food price momentum in May, seen in case of perishables such vegetables and milk, and non-perishables such as pulses and sugar."

SAKSHI GUPTA, PRINCIPAL ECONOMIST, HDFC BANK, GURUGRAM

"Positive print on both consumer price index (CPI) and index of industrial production (IIP), with CPI undershooting expectations while IIP came in higher than expected. The growth and inflation dynamics remain favourable. We see inflation inching lower due to base effects and favourable monsoons over the coming months."

"Although, we continue to expect the RBI to remain cautious for now, both due to domestic and global factors, including food inflation pressures, the timing of the Fed rate cut and the impending budget announcement."

SWATI ARORA, ECONOMIST, HDFC BANK, MUMBAI

"Inflation surprised on the downside. Moderation in inflation was led by a moderation in core inflation and a decline in fuel inflation. Food inflation continued to remain elevated in line with seasonal trends."

"Going forward, core inflation is expected to bottom out and start rising from Q2 FY25. Core CPI is expected to rise above 4% August or September onwards amid lower base from last year."