With higher fuel prices and continually depreciating rupee, India’s retail inflation rate accelerated to a four-month high of 4.87 per cent in May.
This is as per the government data.
However, the analysts had earlier forecast May’s annual increase in the consumer price index at 4.83 per cent.
This is as compared with April’s provisional 4.58 per cent.
The Reserve Bank of India (RBI) last week raised its benchmark interest rate for the first time since 2014, by 25 basis points to 6.25 per cent, citing inflation concerns.
The RBI revised up its inflation forecast to 4.7 per cent for the second half of the fiscal year ending in March 2019, from the 4.4 per cent it projected earlier.>