Skip to content

India’s May Inflation Stays Above 7% on Costlier Food, Fuel

  • Consumer prices rose 7.04% in May versus 7.10% survey estimate
  • RBI may stay hawkish despite 90 bps rate hike so far this year
A vendor sells tomatoes at the Azadpur wholesale market in New Delhi.

A vendor sells tomatoes at the Azadpur wholesale market in New Delhi.

Photographer: Anindito Mukherjee/Bloomberg
Updated on

India’s consumer price gains stayed above the central bank’s target, adding pressure on policymakers to stay hawkish despite raising the key rate by 90 basis points this year.

Retail inflation rose 7.04% in May from a year earlier, the Statistics Ministry said in a statement Monday. That compares with a 7.79% increase in April, and a 7.10% gain seen in a Bloomberg survey of economists.