JOIN US After a soaring WPI (wholesale price index) inflation last week, it is now the turn of retail inflation, which inched up 10.36 per cent in May, putting pressure on the government to augment the supply side measures and tighten the leash on rising support prices, largely blamed for a spike in food inflation of late.
The Consumer Price Index (CPI) or retail inflation was at 10.36 per cent, marginally higher than 10.26 per cent in April, the government data released here said.
The spike in inflation was largely due to higher vegetable prices, which surged close to 27 per cent last month, followed by an over 18 per cent jump in edible oil prices. Milk and related products too rose close to 14 per cent.
Prices of egg, fish and meat also shot up close to 11 per cent, raising concern among the government and the policymakers, already battling a high headline inflation, slowing growth and an almost flat factory output.
Prices of fuel & light, and clothing, bedding and footwear segments also remained in the double-digit.
Analysts said the recent rise in minimum support price for paddy will further add pressure to the rising inflation, making the RBI’s fight against inflation more complex.
Retail inflation has climed quite alarmingly from 7.7 per cent in January 2012 to 10.36 per cent in May.