Consumer price inflation edges up to 5.01% in May

news
12 June 2015

Consumer price inflation based on the consumer price index for May 2015 rose to a two-month high of 5.01 per cent, up from 4.87 in April, showing that the Reserve Bank's concerns over price volatility could turn up to be true.
Consumer price index-based inflation was at 8.33 per cent in May 2014.

The uptick in inflation has been due mainly to a rise in the prices of pulses, which rose by 16.62 per cent in May 2015 over the same month last year, according to the data released by the Central Statics Office (CSO).

Domestic pulses production fell by nearly two million tonnes in 2014-15 crop year due to unfavourable weather conditions such as untimely rains.

The Reserve Bank, which tracks retail inflation as a benchmark for its monetary policy, said earlier this month that price rise was still a worry for the central bank. RBI expects inflation to rise to 6 per cent by January 2016.

The overall food inflation fell to 4.8 per cent during the month, from 5.11 per cent in April 2015. Food inflation stood at 8.89 per cent in May 2014.

The inflation for fruit and vegetables was 3.84 per cent and 4.64 per cent, respectively, in May 2015.

Among others, milk and its products were costlier by 7.43 per cent in May 2015 over the same month last year.

Prices of protein-rich items such as 'meat and fish' rose by 5.43 per cent, while spices turned costlier by 8.82 per cent in the month.

Prices of prepared snacks and meals rose by 7.89 per cent, clothing and footwear category by 6.12 per cent, housing by 4.64 per cent and fuel and light by 5.96 per cent.

Of the other categories, oils and fats prices rose by 1.95 per cent, cereals and products by 1.98 per cent, while that of egg declined by 0.78 per cent in May 2015.


 





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