Retail inflation falls to three-month low in May

Subdued prices of vegetables, cereals and dairy products pulled down retail inflation to a three-month low of 8.28 per cent in May.

The retail inflation , measured on consumer price index (CPI), was 8.59 % in April.

In February 2014, retail inflation was at 8.03 %, followed by consecutive rise in March (8.31 %) and April.  

As per the data released by the government on Thursday, food inflation also fell slightly to 9.56 % in May against 9.66 % in April.

During the month, vegetable prices were down by 15.27% as against 17.5% in April. Prices of cereals and its products came cheaper with rate of price rise at 8.81% as against 9.67% a month ago.

Likewise, rate of price rise in milk and milk products remained at 11.28 %, slightly lower than 11.42 % in April, showed the data.

Among others, food and beverages inflation stood at 9.40 % in May versus 9.66 % in the previous month; fuel and light prices expanded at 5.07% during the month as against 5.96 % rise in April.

However, fruit prices turned costly in May with rate of price rise at 23.17% as against 21.73% a month earlier.

Also, prices of oil and fats went up by 0.91% in May compared to 0.35% rise in the previous month. Protein related items such as eggs, fish and meat had a higher rate of inflation at 10.11 % as against 9.41% in April.

According to the data, the corresponding provisional inflation rates for rural and urban areas for May 2014 are 8.86% and 7.55%, respectively.

The CPI data for June 2014 will be released on July 14, the official statement said.