New Delhi: The retail inflation rate has slipped down in the country in May. A survey conducted by Reuters revealed this. The inflation measured by the consumer price index (CPI) slipped to 7.10% in May. It was at 7.79% in April.
But this rate is above the upper tolerance level kept by the Reserve Bank of India. Earlier the Union government had reduced the duty imposed on petroleum fuels. The fuel prices were reduced to combat rising inflation. RBI had hiked the repo rate by 40 basis point last month and 50 basis point at its meeting last week to face inflation.
Meanwhile, the RBI raised its inflation projection for the current fiscal year. The apex upped the projection to 6.7%.RBI also forecasted the inflation rate at 7.5% in first quarter of the current fiscal. For the second quarter, it is expected to be at 7.4%, while for the third quarter it is to be at 6.2% and in the fourth quarter, it is expected to come down to 5.8%.
As per the data released by RBI, the Wholesale Price Inflation (WPI) touched a record high of 15.08% in April this year. Retail inflation reached a near eight-year high of 7.79%. According to experts, the rising crude oil price and commodity prices are the main reason for the high inflation. The Russia-Ukraine war have impacted commodity prices.