Inflation puts me at a new high in retail and wholesale inflation

Constant rise in prices of food items including vegetables and petrol-diesel

Wholesale inflation rises to 12.94 per cent in May All-time high retail inflation rises to 6.3 per cent six-month high

Retail inflation was 4.23 per cent in April, while wholesale inflation was 10.49 per cent. RBI is unlikely to cut interest rates due to rising inflation.

New Delhi: Inflation has hit me in May. May saw a rise in both retail and retail inflation. Consumer price index (CPI) -based retail inflation rose to 6.3 per cent in May on account of higher food prices. Inflation, as measured by the Wholesale Price Index (WPI), rose to 12.4 per cent in May. Which is the all-time high surface so far.

Retail inflation stood at 4.23 per cent in April, 2021, according to data released by the government. According to data released by the National Statistical Office (NSO), food inflation stood at 5.01 per cent in May.

This is an increase of 1.96 per cent over the previous month. Inflation was 10.49 per cent in April, 2021. In April, 2020, gross inflation was minus 3.37 percent. For the fifth month in a row, prices have risen sharply.

Regarding the high level of gross inflation, the Ministry of Commerce and Industry said that the increase in gross inflation in May, 2021 is due to the low base effect. Rising prices of commodities, including crude petroleum and mineral oil, have also pushed up inflation.

The Reserve Bank of India has asked the government to keep retail inflation at 4 per cent. However, it has a margin of two per cent. The RBI takes retail inflation into account when setting interest rates. With retail inflation hovering above 6 per cent in May, the RBI is unlikely to cut interest rates.

Even earlier this month, the RBI did not change interest rates. The RBI has pegged CPI-based retail inflation at 5.1 per cent in FY2021-22. The RBI estimates that retail inflation will be 5.2 per cent in the first quarter of 2021-22, 5.4 per cent in the second quarter, 4.7 per cent in the third quarter and 5.3 per cent in the fourth quarter.