Retail inflation in India further eased sharply in May to 4.25 per cent, hitting a two-year low. It was at 4.7 per cent in April and 5.7 per cent the previous month.
Indian stock indices started the new week on a steady note with investors largely eyeing May inflation data scheduled to be released this week for further course of action.
Retail inflation or (Consumer Price Index) peaked at 7.8 per cent in April 2022 to an 18-month low of 4.7 per cent in April 2023, driven by a reduction in food and core inflation. In some advanced countries, inflation had in fact touched a multi-decade high and even breached the 10 per cent
Wholesale inflation in India based on the Wholesale Price Index turned negative in April at (-) 0.92 per cent, official data released by the Ministry of Commerce and Industry showed.
Retail inflation in India having moderated sharply in April substantiated the Reserve Bank of India's (RBI) decision to pause the repo rate in its first 2023 monetary policy meeting, according to SBI Research.
India's headline consumer price index-based (CPI) inflation (or retail inflation) has gradually declined from its peak of 7.8 per cent in April 2022 to below 6 per cent now - which is below RBI's upper tolerance band.
Going ahead, the release of US and Indian inflation data for April will be keenly watched by the market participants to get a direction. India retail inflation data is expected on Friday.
The consumer food price index (CFPI) in India moderated to 4.79 per cent in March this year, down from 5.95 per cent in February and 7.68 per cent in March 2022
Emkay Institutional Equities, a part of Emkay Global Financial Services, expects India will likely witness a sub-five per cent inflation in the early part of 2023, with an average rate of Consumer Price Index at 5.2 per cent for the entire calendar year.