CPI inflation dips to 2.18% in May 2017

Core inflation eases to 4.14% in May 2017

The all-India general CPI inflation dipped to fresh record low of 2.18% in May 2017 (base 2012=100), compared with 2.99% in April 2017. The corresponding provisional inflation rate for rural area was 2.30% and urban area 2.13% in May 2017 as against 3.02% and 3.03% in April 2017. The core CPI inflation eased to 4.14% in May 2017 from 4.44% in April 2017. The cumulative CPI inflation was lower at 2.58% in April-May FY2018 compared with 5.61% in April-May FY2017.

Among the CPI components, inflation of food and beverages dipped to (-) 0.22% in May 2017 from 1.29% in April 2017 mainly contributing to the dip in CPI inflation. Within the food items, the inflation slipped for vegetables to (-) 13.44%, pulses and products (-) 19.45%, fruits 1.40%, spices 0.52%, cereals and products 4.81% and prepared meals, snacks, sweets etc 5.17%. The inflation also declined for milk and products to 4.56%, sugar and confectionery 9.84%, oils and fats 2.70%, egg 0.72% and non-alcoholic beverages to 2.66%. The inflation was nearly flat for meat and fish at 1.87% in May 2017.

The inflation for housing was steady at 4.84%, while that for miscellaneous items dipped to 3.81% in May 2017. Within the miscellaneous items, the inflation for transport and communication eased to 3.46%, personal care and effects 3.27%, education 4.90% and health 3.80%, while it rose slightly for household goods and services to 3.97% in May 2017.

The inflation for clothing and footwear eased to 4.41% in May 2017, while the CPI inflation of fuel and light dipped to 5.46% in May 2017.

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