India's retail inflation rises to 3.93% in May; food inflation climbs to 4.78%

India's retail inflation saw an uptick in May, climbing to 3.93% from 3.48% in April, as reported by the National Statistics Office. This rise in the Consumer Price Index (CPI) signals a shift in price pressures across the country.

Food inflation, a significant component of the overall index, also moved higher, reaching 4.78% in May. Within food prices, rural areas experienced a slightly higher inflation rate at 4.85% compared to urban areas at 4.66%. The data indicates that rising food costs are impacting households across different regions.

Beyond food and beverages, which saw inflation at 4.55%, other categories also experienced notable price increases. Restaurants and accommodation services recorded inflation at 5.75%. The highest inflation was observed in personal care, social protection, and miscellaneous goods and services, which collectively saw an 18.46% rise.

Housing inflation remained relatively moderate at 2.12% for the month. On the other hand, certain items saw significant price drops, most notably potatoes, with inflation at a negative 23.71%. Other items with declining prices included peas and motor cars/jeeps.

Among states with populations exceeding 50 lakh, Telangana reported the highest retail inflation at 6.15% in May. Tamil Nadu followed with 5.11%, then Andhra Pradesh at 4.90%, Karnataka at 4.59%, and Odisha at 4.54%.