India CPI Inflation Accelerates More Than Expected

(RTTNews) - India's consumer price inflation accelerated more-than-expected in May, preliminary figures from the Central Statistics Office showed Monday.

The consumer price index rose 5.76 percent, which faster than the 5.60 percent climb economists had expected. A year ago, the rate was 5.01 percent.

The inflation figure for April was revised higher to 5.47 percent from 5.39 percent reported initially.

Food price inflation accelerated to 7.55 percent in May from 6.40 percent in the previous month.

Compared to the previous month, the CPI climbed 1.02 percent and food prices grew 1.98 percent.

While leaving interest rates unchanged this month, the Reserve Bank of India retained its inflation projections, though with an upside bias.

A strong monsoon, continued astute food management, as well as steady expansion in supply capacity, especially in services, could help offset upward inflationary pressures, the bank observed.

The central bank expects inflation to decelerate modestly and remain around 5 percent during 2016-17.