India's consumer price inflation eased for the fifth consecutive month in May, reaching its lowest level in a year, primarily due to decreased costs for fuel and lighting, according to data released by the National Statistical Office on Wednesday.
The consumer price index saw an annual increase of 4.75 percent in May, down from the 4.83 percent rise recorded in April. During the same period last year, inflation was at 4.31 percent.
Economists had anticipated a rise in inflation to 4.9 percent.
Notably, the inflation rate remained within the Reserve Bank of India's tolerance range of 2-6 percent.
Housing costs grew at a slower annual rate of 2.56 percent compared to the 2.68 percent increase observed a month earlier. In contrast, fuel and lighting expenses saw a decrease of 3.83 percent.
However, food price inflation remained high at 8.69 percent in May, nearly matching the 8.70 percent increase recorded in April. This was largely driven by a 27.33 percent surge in vegetable prices.
On a month-to-month basis, consumer prices rose steadily at a rate of 0.48 percent in May.
Last week, the Reserve Bank of India maintained its key interest rates at 6.50 percent for the eighth consecutive month, reaffirming its commitment to a disinflationary stance until inflation consistently aligns with its target, amid robust economic growth.
