Inflation declines to reach 7.04 in May

New Delhi: The retail inflation has softened a bit, reaching 7.04 in May, but still floats above the RBI's tolerance level, and the situation stays the same for the fifth successive month, PTI reported, citing government data.

While the Consumer Price Index ( CPI) was 7.79 per cent in April, it was 6.3 per cent in May 2021.

According to the data released by the National Statistical Office (NSO), When the food basket inflation was 8.31 per cent in April 2022, it came down to 7.97 per cent last month.

Meanwhile, the RBI, which factors the CPI in its monetary policy, had raised its inflation estimate for the current financial year from 5.7 per cent to 6.7 per cent.

Also, the RBI forecast states that inflation in the first quarter of the fiscal might be 7.5 per cent and 7.4 per cent in the second quarter but is expected to decline to 6.2 and 5.8 in the next two quarters, respectively.

The government has tasked the RBI to ensure inflation remains at 4 per cent with a margin of 2 per cent on either side, PTI reports.