India May Inflation Stays Below 4%; Food Inflation Rises to 4.78%

India’s retail inflation stayed below 4% in May despite some pressure from food items. The headline inflation during the month was 3.93%, up from 3.48% in April, while food inflation increased to 4.78% from 4.20%, according to data released by the National Statistics Office today.

Rural inflation rose to 4.25% in May from 3.74% in April, while urban inflation increased to 3.53% from 3.16%. The all-India CPI index rose 0.8% month-on-month to 105.91, while the food index rose 0.9% to 105.35.

A poll of forecasts by Bloomberg, Reuters, Informist and Mint showed May consumer price index inflation in a narrow range of 4.0-4.1%.

The data showed price pressures remained uneven, with food and personal care items driving inflation higher, while transport, health, housing and communication inflation stayed subdued.

• Food and beverages inflation was 4.55% in May.
• Food inflation, measured by the Consumer Food Price Index, was 4.78%.
• Pan, tobacco and intoxicants inflation was 4.83%.
• Clothing and footwear inflation was 2.98%.
• Housing, water, electricity, gas and other fuels inflation was 1.73%.
• Health inflation was 1.49%.
• Transport inflation was 1.75%.
• Information and communication inflation was 0.30%.
• Education services inflation was 2.99%.
• Restaurants and accommodation services inflation was 5.75%.
• Personal care, social protection and miscellaneous goods and services inflation was 18.46%.