India Inflation May 2022

India: Inflation moderates in May

Consumer prices rose 0.94% in May over the previous month, below April’s 1.43% increase. May’s result marked the weakest reading since February. Looking at the details of the release, the change in the prices for food and beverages was largely stable in May. In contrast, prices for fuel and light grew at a softer rate. Meanwhile, clothing and footwear prices accelerated.

Inflation eased to 7.0% in May, following April’s 7.8%. Annual average inflation rose to 5.9% in May (April: 5.8%).

Analysts at Nomura said:

“We believe inflation is yet to peak. Global commodity prices remain elevated, and firms continue to face margin pressures despite passing on costs to consumers. This is likely to be exacerbated by the ongoing power crunch, with firms facing higher cost of power and electricity tariffs likely to be revised upwards. Rising crude oil prices may negate the recent cut in fuel excise taxes. Despite the relatively measured rise in Kharif crop minimum supporting prices, lower production due to a heat wave, higher input and feedstock costs, and elevated levels of global prices imply that food inflation is likely to remain elevated. Finally, we remain alert to second-round effects, through higher inflation expectations, wages and rents, leading to persistence of inflation.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest