India is moving fast on the path of progress. There has been a decline in wholesale inflation in the month of May. Inflation based on the Wholesale Price Index declined to minus 3.48 percent in May. That is, at present inflation in India is running in negative, which is the lowest level in three years. It was minus 0.92 per cent in April. Same is the case with retail inflation.
Retail inflation reached a two-year low of 4.25% in May. Retail inflation was 4.7 percent in April. The reduction in inflation will reduce the burden of running the house on the common people. On the other hand, the Reserve Bank of India (RBI) will also get a chance to reduce the repo rate.
The repo rate has not changed in the last two monetary policies. In such a situation, it is expected that if inflation continues to decrease in this way, then in the next monetary policy meeting, RBI can take a decision on reducing the repo rate. This will provide relief to all types of loan borrowers including home, car loans. Lowering the repo rate will reduce the EMI burden.
Retail inflation declines for the fourth consecutive month
This information was given in the data released by the government on Monday. According to the data, retail inflation in May 2023 stood at 4.25 per cent, which is the lowest level since April 2021. Retail inflation in April, 2021 stood at 4.23 per cent. Inflation based on Consumer Price Index (CPI) stood at 4.7 per cent in April, 2023.
On the other hand, a year ago in May 2022, the retail inflation was at the level of 7.04 percent. Thus, retail inflation declined for the fourth consecutive month. With this, this is the third consecutive month when retail inflation is at a level satisfactory to the Reserve Bank of India.