New Delhi: According to data released by the National Statistics Office (NSO), India’s retail inflation rose to 3.93 % in May from 3.48% in April on Friday.
According to Dipti Deshpade, Principal Economist, Crisil Ltd, the impact of the West Asia conflict is starting to induce in the household budgets.
She said, ” Crisil expects CPI inflation to rise to an average 5.1% this fiscal, from 2.0% last fiscal, with risks from higher fuel prices, currency depreciation, second -round effects and potentially weak rainfall.”
Sujan Hajra, Chief Economist & Executive Director of Anand Rathi Group noted the over 40 basis-point jump in retail inflation in May 2026 already anticipated the situation and said, ” Our assessment is that headline retail inflation could breach 6% at some point over the next six months. Even so, the RBI may refrain from adopting a decisively hawkish stance, provided core inflation remains anchored around 4% and inflationary pressures do not, inflation remains anchored around 4% and inflationary pressures do not become broad-based.”
Further she said,”both food and fuel inflation are likely to remain on an upward trajectory in the months ahead.”
Housing inflation continues to be moderate, of which Vivek Rathi, National Director-Research of Knight Frank India said,”the sector has not become a significant source of price pressures in the economy.” Adding to it Rathi said,” Going forward, the interplay between global commodity prices, and domestic inflation expectations will be critical in shaping the macroeconomic environment and the interest rate outlook.”
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