Topic
price rise
Business India inflation likely rose to 4% in May as food, fuel costs climb
A Reuters poll of 38 economists forecasts India's consumer price inflation rose to 4.0% in May, up from 3.48% in April, driven by rising vegetable prices and four fuel price hikes by state-owned retailers. The Reserve Bank of India kept rates unchanged last week, but raised its inflation forecast for the fiscal year to 5.1%. Economists warn that wholesale price inflation, which accelerated to a 3-1/2-year high of 8.3% in April, will feed through to consumer prices gradually.
Business India's Retail Inflation Quickens to 3.93% in May, Stays Below RBI Target for 16
India's retail inflation accelerated to 3.93% in May, driven by higher food and fuel prices, marking the highest reading under the revamped CPI series. Despite the rise, inflation has stayed below the RBI's 4% target for 16 straight months, giving policymakers room to support growth. However, risks from rising energy costs and a below-normal monsoon could complicate the outlook.