India’s CPI inflation took a breather as it eased to 7.04%YoY in May-22 from a near 8-year high of 7.79% in Apr-22
Download ReportMay-22 CPI inflation - Eases from the peak
India’s CPI inflation took a breather as it eased to 7.04%YoY in May-22 from a near 8-year high of 7.79% in Apr-22. Notwithstanding the drop, it marks the fifth consecutive month of headline inflation remaining above RBI’s upper tolerance level of 6%. Aiding the headline inflation lower, sequential momentum moderated to 0.76%MoM in May-22 after averaging at 1.20%MoM over the months of Mar-Apr-22. The downside in momentum was an outcome of several actions: Ban on wheat exports announced in mid-May-22 that led to some correction in domestic prices; Reduction in excise duty on petrol and diesel by Rs 8 and Rs 7 per litre respectively, announced on 21stMay-22; Supply side measures of reduction in custom duties on raw materials for steel and plastic industries; Lifting of palm oil export ban by Indonesia