In May, India’s retail inflation dropped to a 12-month low of 4.75%, driven by reduced core and fuel prices, despite high food costs at 8.69%. Key food items like pulses (17.14%) and vegetables (27.3%) saw significant price increases. The Reserve Bank of India kept interest rates steady at 6.5%, with an inflation forecast of 4.5% for the fiscal year. Meanwhile, industrial production growth slowed to 5% in April, down from 5.4% in March, with manufacturing growth at 3.9%. Certain manufacturing sectors and consumer non-durables saw declines, while infrastructure and consumer durables showed strong growth.
Indian Inflation Eases While Industrial Growth Slows in May
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