Retail inflation up 5.01 per cent in May

Retail inflation edged up to 5.01 <g data-gr-id="27">per cent</g> in May on costlier pulses even as prices of fruits and vegetables eased during the month. The Consumer Price Index-based inflation was at 4.87 per cent in April 2015. The retail inflation was 8.33 per cent in May 2014. Prices of pulses rose by 16.62 per cent in May 2015 over the same month last year, according to the data released by the Ministry of Statistics & Programme Implementation today.

Prices of pulses rose by 16.62 per cent in May 2015 over the same month last year, according to the data released by the Ministry of Statistics & Programme Implementation on Friday. 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 <g data-gr-id="18">per cent</g> by January 2016. The overall food inflation fell to 4.8 <g data-gr-id="19">per cent</g> during the month, from 5.11 <g data-gr-id="20">per cent</g> in April 2015. The food inflation was at 8.89 <g data-gr-id="21">per cent</g> in May 2014.