The Consumer Price Index (CPI) shows a rise in the retail inflation as it hit a 4.8 per cent on food and fuel prices for the 4th consecutive month. An inflation of 4.58 per cent recorded in the month of April 2018 increased to 4.87 per cent in the month of May 2018. The inflation has been rising for 7 months now, making it difficult for the RBI to cap it at 4 per cent as previously decided by the regulatory.
The inflation that has been present for 7 months now, started with a 5.21 per cent in December 2017, followed by a 5.07 per cent in January 2018. February 2018 saw a decline in inflation at 4.44 per cent and 4.28 per cent in March 2018. By April 2018, the inflation rate had started to increase again at 4.58 per cent, followed by the 4.87 per cent in May 2018.
The data released by Central Statistics Office (CSO) shows a rise of 3.10 per cent inflation in food prices in May 2018 when compared to the 2.8 per cent in the previous month. The increase in the fuel prices is due to the global inflation on petrol and diesel that lasted for 3 years and 6 months until May 2018 as a result of constraints on fuel supply from the U.S.
Source: Times of India