The annual consumer inflation rose to a four-month high of 4.87 per cent in May as compared to 4.58 per cent in April, provisional government data showed on Tuesday. The annual retail inflation in April 2017 stood at 2.99 per cent. Analysts in a poll by news agency Reuters had earlier forecast an increase in retail inflation to 4.83 per cent in May. May is the seventh month in a row in which retail inflation is higher than RBI's medium-term target of 4 per cent. Food inflation rose to 3.10 per cent last month as compared to 2.80 per cent in April.
"Pass through of fuel prices largely led to surge in inflation hile core inflation added to pricing pressures...Separately, food prices also showed some increase on account of food price hike, especially fruits and vegetables. However, they can be expected to stabilise on monsoon cues while core inflation can be expected to see further expansion if input costs remain on elevated levels," said Anis Chakravarty, Lead Economist and Partner, Deloitte India.
| Indices | May 2018 (Prov.) | ||
|---|---|---|---|
| Rural | Urban | Combd.> | |
| CPI (General) | 4.88 | 4.72 | 4.87 |
| CFPI | 3.85 | 1.66 | 3.10 |
| Indices | April 2018 (Final) | ||
| Rural | Urban | Combd. | |
| CPI (General) | 4.67 | 4.42 | 4.58 |
| CFPI | 3.63 | 1.29 | 2.80 |
| Indices | May 2017 (Final) | ||
| Rural | Urban | Combd. | |
| CPI (General) | 2.30 | 2.13 | 2.18 |
| CFPI | -0.60 | -1.85 | -1.05 |
| Item Group | Weights (%) | Contribution to IIP Growth |
|---|---|---|
| High Positive Contributors | ||
| Mining | 14.37 | 0.6126 |
| Scientific instruments/ apparatus for drawing, calculating and measurement | 0.04 | 0.5126 |
| Commercial Vehicles | 0.94 | 0.4686 |
| Sugar | 0.76 | 0.4088 |
| Cement- all types | 2.16 | 0.3836 |
| High Negative Contributors | ||
| Jewellery of gold (studded with stones or not) | 0.44 | -0.4452 |
| Copper bars, rods & wire rods | 0.64 | -0.2672 |
| Telephones and mobile instruments | 0.19 | -0.1641 |
| Readymade Garments, knitted | 0.23 | -0.1363 |
| Air filters | 0.19 | -0.1345 |
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