CPI in India reduces 2.82 % in May

The Ministry of Statistics and Program Implementation in the country stated on Thursday that consumer inflation in India fell to 2.82 % of the expected in May.

The main inflation on an annual basis came without a survey of Reuters, an increase of 3 % and reached its lowest level since February 2019, according to the government statement. The print has increased 3.16 % in April.

Food enlargement, which is a main scale, 0.99 % in May, was less than 1.78 % of April. Vegetable enlargement decreased by 13.7 % in April, with grain prices increasing by 4.77 % in May.

The Reserve Bank in India has relaxed a monetary policy amid diligence pressures. Recently, the bank cut the standard ribau rate by 50 basis points to 5.50 %, An invisible level since August 2022.

This step has confirmed that policy makers have turned towards enhancing economic growth, as RBI now reduced interest rates for three consecutive meetings since February.

Rabi Sanjay Malhotra attributed the latest reduction in softening inflation, growth that was “less than our aspirations in a difficult global environment and the increasing certainty.”

Nomura Economists connect the consumer price index in India to “3.3 % subjected” to the fiscal year 2026, which indicates RBI 3.7 % targetQuoting the prices of basic commodities diluted amid weak economic activity and the flow of cheap Chinese goods in the market.

The Investment Bank expects additional discounts from 25 basis points in October and December, as the plant rate increased to 5 %.

India’s economy expanded faster than expected The annual average of 7.4 % in the quarter ended in March6.7 % higher growth estimates by economists in a Reuters poll.

For the full fiscal year 2025, the economy Expanding 6.5 %Creating with government estimates. RBI has She kept dropping her growth For the current fiscal year, which ends in March 2026, by 6.5 %.

In the face of a 26 % possible tariff on its goods, India was in talks with the United States, with the aim of securing a deal before the deadline in July.

Indian and American commercial negotiators were Close to the signature of “temporary” A bilateral trade deal, Reuters reported earlier this week. The initial agreement is likely to focus on reaching markets for industrial goods and some agricultural commodities, low tariffs and other non -fire barriers, according to Reuters.

– CNBC from CNBC contributed to this report