Retail inflation drops to record low of 2.18% in May
Steep fall in prices of vegetables and pulses.
Retail inflation fell to a record low of 2.18% in May as prices of kitchen staples like vegetables and pulses declined sharply although there was a marginal spike in fruit rates.
Clothing, housing, fuel and light also saw lower inflation. Retail inflation dropped to an all time low of 2.18 % in May. The CPI based retail inflation stood was at 2.99 % in April 2017. In May 2016, it was at 5.76 %.
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The overall food inflation was in negative territory at (-) 1.05 % during the month. Prices of vegetables declined by 13.44 % and that of pulses and products by 19.45 %. Earlier this month, the Reserve Bank had maintained status quo on key lending rate (repo) citing risks to inflation.