CPI inflation crawls up to 5% in May 2015

Core inflation rises to 4.4% in May 2015 rising for the second straight month

The all-India general CPI inflation moved up slightly to 5.01% in May 2015 (new base 2012=100) from 4.87% in April 2015. An increase in inflation for transportation and communication contributed to the rise in overall CPI inflation, while food items inflation declined restricting an increase in overall CPI inflation in May 2015.

The corresponding provisional inflation rate for rural area was 5.5% and urban area 4.4% in May 2015 as against 5.3% and 4.4% in April 2015. The core CPI inflation rose to 4.4% in May 2015 from 4% in April 2015 and 3.9% in March 2015.

The CPI inflation increase in May 2015 was mainly driven by higher inflation for transportation and communication (within in miscellaneous item group) to 0.6%. The CPI inflation for fuel and light also inched up to 6%. Inflation of clothing and footwear was flat at 6.1%, while housing inflation also remained steady 4.6% in May 2015. However, the inflation of the food and beverages group declined to 5.1% in May 2015 from 5.4% in April 2015.

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