Will food prices push Mays inflation numbers up?
A Reuters poll suggested that higher food and fuel prices may push up inflation to over 5.5% in May.
The Reserve Bank of India (RBI) has said that future trajectory of inflation has become uncertain. The consumer price index (CPI), or retail inflation numbers expected on 5.30 pm on Monday, here’s what to expect.
RBI expects that continuous rise in prices of food and fuel are likely to accelerate inflation.
A Reuters poll suggested that higher food and fuel prices may push up inflation to over 5.5% in May.
India’s inflation grew by 5.4% in April, growing in both rural and urban region by 6.09% and 4.68% respectively.
CPI is important for India’s economy as the RBI tracks this data to set its monetary policy.
During the bi-monthly monetary policy last month, Raghuram Rajan, Governor, RBI had said that there are concerns over rising food and commodity prices.
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