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Retail inflation accelerates to 4.87 percent in May

Reuters  |  NEW DELHI 

(Reuters) - India's retail rate accelerated to a four-month high of 4.87 percent in May, government data showed on Tuesday, driven by higher fuel prices and a depreciating rupee.

Analysts polled by had forecast May's annual increase in the consumer price index at 4.83 percent, compared with April's provisional 4.58 percent. The forecasts for May ranged from 4.1 percent to 5.7 percent.

May was the seventh straight month in which was higher than the central bank's medium-term target of 4 percent.

The of (RBI) last week raised its benchmark interest rate for the first time since 2014, by 25 basis points to 6.25 percent, citing concerns.

The RBI revised up its inflation forecast to 4.7 percent for the second half of the fiscal year ending in March 2019, from the 4.4 percent it projected earlier.

(Reporting by Manoj Kumar; Editing by and Malini Menon)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, June 12 2018. 17:50 IST