Retail inflation fell to a one-year low of 4.75% in May as prices of some kitchen items declined marginally, according to government data released on Wednesday.
Consumer Price Index (CPI) based retail inflation stood at 4.83 percent in April 2024 and 4.31% in May 2023 (previous low).
According to data released by the National Statistical Office (NSO), inflation in the food basket stood at 8.69% in May, slightly lower than 8.70% in April.
A headline price increase has seen a gradual decline since February 2024, albeit in a narrow range from 5.1% in February to 4.8% in April 2024.
The government has entrusted the Reserve Bank with the task of ensuring that CPI inflation remains at 4% with a margin of 2% on either side.
Earlier this month, the RBI had projected CPI inflation at 4.5% for 2024-25, 4.9 percent in Q1, 3.8% in Q2, 4.6% in Q3 and 4.5% in Q4.
The central bank mainly takes into account retail inflation while deciding its bi-monthly monetary policy.
