The core CPI for May increased to 3.05 percent from 2.92 percent in April.
The latest price data released by the Central Statistics Office showed that consumer price index (CPI)-based inflation, which measures changes in shop-end prices, remained comfortably within the Reserve Bank of India’s target level of 4 percent.
Food prices, which is a gauge to measure changes in kitchen budgets, grew 1.83 percent in May compared to 1.1 percent in April. The inflation rate in cereals and products stood at 1.24 percent in May as against 1.17 percent in April. The vegetables inflation stood at 5.46 percent in May versus 2.87 percent in April.
India is in the throes of an economic slowdown. According to the official data released on May 31, India’s gross domestic product (GDP) grew 5.8 percent in January-March, which confirmed fears of a slowdown. “Real” or inflation-adjusted GDP grew 6.8 percent in 2018-19, lower than previous year’s 7.2 percent, data released by the Central Statistics Office (CSO) showed.
The growth in GDP was slowest since 2014-15.
The national income data have reinforced deceleration signs that were emanating from a slew of shop-end data, such as car and consumer goods sales, often seen as proxy indicators to gauge trends in household spending.
Finance Secretary Subhash Chandra Garg has also stated that the slowdown will continue in the first quarter of the current financial year 2019-20 (FY20).
First Published on Jun 12, 2019 05:39 pm