Lowest Retail Inflation Marks Six-Year Record

Retail inflation dropped to a six-year low in May at 2.82%, driven by decreased prices of food items like vegetables and fruits. This marks a significant decline from previous months, reflecting favorable trends in staple product categories.

Retail inflation has hit a remarkable low, reaching just 2.82% in May, its lowest in over six years, according to recent government data. The decline is primarily due to subdued prices of essential food items like vegetables, fruits, and protein-rich products.

In comparison, the Consumer Price Index-based retail inflation was 3.16% in April and 4.8% in May of last year. The National Statistics Office reported food inflation dramatically decreasing to 0.99% from last year's 8.69%.

This drop can be credited to falling prices of pulses, vegetables, cereals, and more, alongside a favorable base effect, marking the lowest food inflation since October 2021.

(With inputs from agencies.)