Retail inflation in May: Retail inflation moderated slightly

New Delhi:

Retail inflation in the country declined slightly in the month of May to 7.04 percent.

Which was 7.79 percent in April 2022.

However, retail inflation of seven percent is also taking a toll on the pocket of the common man.

The rising cost of food items, milk and transportation along with the prices of petrol and diesel has increased the expenditure of the month for the common man.

On the other hand, the Reserve Bank has increased the interest rates by about one percent within a month to control inflation.

This has also increased the EMI of those taking home loan, personal loan or vehicle loan. 

Inflation reached an eight-year high in April.

Earlier, in May 2014, inflation was at 8.33 per cent.

Talking about a year ago, retail inflation was at 4.23 percent.

In the two years of the Corona era, the economy is seeing a boom again after a sharp decline in demand and turmoil in industrial activities.

This has also spurred demand and consumption, but the Russo-Ukraine war has disrupted global supply chains.

Due to this there has been a big jump in the prices of crude oil, edible oil and commodity.


The Reserve Bank has adopted the stance of increasing interest rates after two years to contain inflation.

The RBI has considered the inflation rate of 4 percent as satisfactory and 6 percent as the maximum tolerable level, but inflation has remained above 6 percent for the fifth consecutive month.

The central bank has also said in its estimate that inflation will remain above the target band of 2-6 in this financial year.

However, it is too early to say where the highest level of inflation will reach.