India’s retail inflation cooled to a one-year low of 4.75% in May, led mainly by a drop in prices of some kitchen items.

The Consumer Price Index (CPI) based retail inflation was 4.83% in April 2024 and 4.31% in May 2023.

Inflation in the food basket was 8.69% in May, marginally down from 8.70% a month ago, according to data released by the National Statistical Office (NSO).

Headline inflation has seen sequential moderation since February 2024, albeit in a narrow range from 5.1% in February to 4.8% in April 2024.

Earlier this month, the RBI projected the CPI inflation for 2024-25 at 4.5%, with Q1 at 4.9%, Q2 at 3.8%, Q3 at 4.6% and Q4 at 4.5%.

The central bank mainly factors in the retail inflation while arriving at its bi-monthly monetary policy.