New Delhi, Jun. 13, (dpa-AFX/GNA) - India’s consumer price inflation moderated more than expected in May to its lowest level in just over two years amid a continued slowdown in food prices, and industrial production expanded at an accelerated pace in April, separate data from the National Statistical Office showed on Monday.
The consumer price index, or CPI, rose 4.25% year-over-year in May, slower than the 4.7% rise in April. Economists had forecast the inflation rate to drop to 4.42%. In the corresponding month last year, inflation was 7.04%.
Inflation remained within the Reserve Bank of India’s tolerance band of 2 to 6% for the third month in a row. Nonetheless, the inflation rate is still slightly above the central bank’s medium-term target of 4%.
At its latest meeting held last week, the Monetary Policy Committee of the RBI lowered the CPI inflation for 2023-24 to 5.1% from 5.2%.
Food price inflation moderated to 2.91% in May from 3.84% in the prior month, largely led by an 8.18% plunge in vegetable prices, the NSO data showed.
Prices for clothing and footwear rose 6.64% annually in May, and housing costs were 4.84% higher.
On a monthly basis, consumer prices went up 0.68% in May and food prices showed an increase of 0.51%.
Separate official data showed that industrial production growth rebounded from March’s 5-month low of 1.7% to 4.2% in April. That was also well above the expected rise of 1.8%.
GNA