Retail inflation rises to 5.76% in May; rate cut hopes reduced

Zee Media Bureau

New Delhi: Retail inflation in May rose to 5.76 percent on account of dearer food articles such as vegetables and pulses.

The retail inflation, measured on Consumer Price Index (CPI), in April was at 5.47 percent.

In May last year, it had been 5.01 percent.

The accelerated pace could put a pause on more rate cuts by the Reserve Bank.

Inflation in the vegetable basket more than doubled to 10.77 percent in May as compared to 4.82 percent in the previous month. Overall food inflation moved up to 7.55 percent in May as against 6.32 percent in the previous month, the data showed.

Cereal and related products, meat and fish, milk and its products, and fruits were dearer in May as compared to the previous month.