The retail inflation has eased to 4.75% in May as against, 4.83% in April. The core inflation has also eased to 3.1% in May in comparison to 3.2% in April.
Food inflation in May remained largely the same as April, coming in at 8.69%, however vegetable inflation continued to remain high, coming in at 27.3%. Meanwhile, fuel prices contracted 3.83% as compared to a 4.24% decline in April.
The Reserve Bank of India remains committed to for aligning inflation to 4% on a durable basis. The central bank has kept the repo rate unchanged at 6.5% for the eighth time in row during its June MPC meet. RBI projected the CPI inflation for FY25 at 4.5%, assuming normal monsoon.
Meanwhile, the factory output remains steady at 5% mainly due to good show by mining and power sectors, according to official data released on Wednesday. The factory output measured in terms of the Index of Industrial Production (IIP) witnessed a growth of 4.6% in April 2023.
The Manufacturing sector's output also grew 3.9% in April 2024 against 5.5% in the year-ago month.
Also watch: April retail inflation comes in at 4.83% vs 4.85% in March