Due to higher oil prices, the consumer price index (CPI) inflation rate for May 2018 rose to 4.87% against April’s 4.58%, showed a data by the Ministry of Statistics and Programme Implementation.

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Retail inflation, measured by the year-on-year change in the CPI, rose sharply to 4.6 percent in April, driven mainly by a significant increase in inflation excluding food and fuel, Reserve Bank of India (RBI) said in its second bi-monthly Monetary Policy Statement (MPC).

The CPI for the month of May 2018 rose to 139.8 points from 137.10 points in April 2018, the report said. The food inflation for May stood at 3.1%.

source: tradingeconomics.com

A poll conducted by CNBC-TV18 showed that the CPI for May 2018 is expected to be between 4.8 percent and 5 percent, month-over-month.

Analysts on an average expect the inflation to harden month-on-month to around 5 percent, adding that monsoon, Brent prices and fiscal spending in the run up to 2019 election will impact the inflation.

CPI inflation for the first half of 2018-19 was revised to between 4.8-4.9 percent, and to 4.7% in the second half of the fiscal year, the RBI said in its Monetary Policy Statement.

First Published:Jun 12, 2018 5:38 PM IST