India's inflation is higher than other key developing economies, shows data

In its outlook on inflation last week, the RBI maintained that the headline inflation is to be shaped by food price dynamics

India’s prices are rising faster than many of its emerging market peers. 

The country’s inflation print for May at 4.25 per cent is a marked reduction from the levels seen in May 2022 (7.04 per cent). However, even though the inflation rate remains within the Reserve Bank of India’s medium-term target of 4 per cent, with a 2 per cent margin on either side, it continues to be higher than China, Russia, and Brazil.

India’s rate hikes have been lower than every other economy under consideration. Key interest rates across countries were kept at historic lows in 2020 to limit