India Inflation Climbs To 3.93% In May

(RTTNews) - India's consumer price inflation accelerated further in May to the highest level in sixteen months amid higher food costs, the Ministry of Statistics and Programme Implementation said Friday.

The consumer price index registered an increase of 3.93 percent on a yearly basis in May, faster than the 3.48 percent rise in April. The expected inflation rate was 4.0 percent.

Nonetheless, the inflation rate remained slightly below the RBI's medium-term target of 4.0 percent.

Food inflation quickened to 4.78 percent from 4.20 percent. Charges in connection with transport services for goods surged 7.63 percent due to higher logistics and crude oil prices.

Clothing and footwear costs were 2.98 percent more expensive, and housing and utility costs increased 1.73 percent. Data showed that costs related to personal care, social protection and miscellaneous goods and services grew sharply by 18.46 per cent.

Last week, the Reserve Bank of India left its key policy rates unchanged at 5.25 percent and unveiled a slew of measures to attract dollar inflows as the rupee continues to slide amid a mix of surging oil prices, foreign capital outflows from emerging markets and geopolitical risks triggered by the Middle East conflict.