News, Scrip Scan

Retail inflation at 7-month high of 3.05% in May, within RBI’s comfort zone

Scrip Sanctuaries for protection from the wildlife in this jungle of Indian Equities

Retail inflation at 7-month high of 3.05% in May, within RBI’s comfort zone

The previous high was in October 2018, when the retail inflation print came in at 3.38 per cent

Retail inflation spiked to a seven-month high of 3.05 per cent in May, remaining within the Reserve Bank of India’s (RBI’s) comfort level, as kitchen items like vegetables, meat and fish turned dearer, government data showed on Wednesday.

The consumer price index- (CPI)-based retail inflation for April was revised marginally upwards to 2.99 per cent from the earlier estimate of 2.92 per cent, according to the data released by the Central Statistics Office (CSO) of the Ministry of Statistics and Programme Implementation.

Retail inflation stood at 4.87 per cent in May 2018.

The previous high was in October 2018, when the retail inflation print came in at 3.38 per cent. Vegetables prices witnessed a sharp rise in May at 5.46 per cent, as against 2.87 per cent in April 2019.

Prices of meat and fish went up by 8.12 per cent (from 7.55 per cent), while the inflation print for cereal and products rose to 1.24 per cent (from 1.17 per cent) in May this year.

However, prices of fruits continued to show a deflationary trend with prices falling by 5.17 per cent in May against 4.89 per cent in the preceding month. For fuel and light category, inflation stood at 2.48 per cent, as against 2.56 per cent in April.

Inflation for the overall food basket, based on consumer food price index, increased to 1.83 per cent in May, as against 1.10 per cent a month earlier, the data showed. “Given the delay in monsoon and sharp drought conditions in Maharashtra, the progress is important as food inflation has started to increase and can become sharp in case of specific crop failures especially pulses and oilseeds. Also horticulture becomes vulnerable to monsoon effects,” said Madan Sabnavis, chief economist at CARE Ratings.

Retail inflation is a crucial data point, keenly watched by the Reserve Bank, while deciding its monetary policy.

Excerpts from Gaurav’s Blog

  Rest in Peace now Gerela Saab  ! Mr S T Gerela ex GM of BSE passed away peacefully this morning We had not met in years but he always remained at the top of my mind when it came to testimonials for this is what he had said to me over a decade ago,when […] [...]

Vedanta de-listing offer price Rs 87.50~Come on Mr Anil Agarwal ! Promoter Group of  Vedanta Ltd has proposed a voluntary de-listing at an indicative offer price of Rs 87.50~are the over 7.3 lakh minority shareholders from Alibag !? …apologies to the people of Alibag Some would term this as De-listing Duplicity ~ but I would […] [...]

This is a Riskless Reliance Industries Rights Investment Strategy for those over 2.3 Million Shareholders already holding RIL shares. It is not a recommendation to buy RIL cum rights  It’s a no brainer yet I’m just penning a brief note because some have told me they hold Reliance but are skipping the Rights ! Don’t […] [...]

 Wealth is negotiable, Health is not Your Personal Well Being is more important that the Stock Market Well Being ~ Always & more so in this unfathomable ongoing Covid-19 Reality Above’s a three minute reach out by me last night to all connected with me to reinforce this .It’s also posted on Facebook , […] [...]

Yes Bank ~ Has the RBI & MOF lost it !? SEBI really is a bystander here Controversial Lock In Clause 3 Sub Clause 8 (a) in the Scheme of Reconstruction  No wonder the Finance Minister Mrs Nirmala Sitharaman, while highlighting only selected points, even when asked for details of the Scheme,did not want to […] [...]