Retail inflation rose to a 6 months high in May 2021Consumer Cost Index or retail inflation for May 2021 experienced an increase as it was 6.3 per cent compared to 4.23 percent in April 2021.
It has actually touched the highest mark in 6 months, as it was 6.93 percent in November 2020.
Likewise food inflation too saw a rise as it was 5.01 percent in May 2021, a high walking over April 2021, when it was 1.96 per cent.On a month over month basis, rates of main food items like meat and fish, fruits and vegetables, milk, egg, pulses, oils and fats saw an increase in May 2021 compared to April 2021.
This led to the sharp increase in food inflation as it climbed to 5.01 percent in May 2021, while it was only 1.96 percent in April 2021.
The spike in retail inflation was mainly due to significant boost (month on month basis) in expenses of healthcare (owing mainly due to the second wave of Coronavirus pandemic which raged throughout the country throughout the month of May), family goods, real estate, clothing, fuel and lights, personal care products as well as transportation and communication.Interestingly the retail inflation of 6.3 per cent in May 2021, is much higher than Reserve Bank of India's target of 2 per cent to 6 per cent, which it has actually repaired in tandem with the Federal government for the next five year, i.e.
till 2026.