Consumer Price Index or retail inflation for May 2021 witnessed a rise as it was 6.3 per cent compared to 4.23 per cent in April 2021. It has touched the highest mark in six months, as it was 6.93 per cent in November 2020.
Similarly food inflation too saw a rise as it was 5.01 per cent in May 2021, a steep hike over April 2021, when it was 1.96 per cent.
On a month over month basis, prices of primary food items like meat and fish, fruits and vegetables, milk, egg, pulses, oils and fats saw a rise in May 2021 compared to April 2021.
This led to the sharp rise in food inflation as it climbed to 5.01 per cent in May 2021, while it was only 1.96 per cent in April 2021.
Similarly the spike in retail inflation was mainly due to substantial increase (month on month basis) in costs of healthcare (owing mainly due to the second wave of Coronavirus pandemic which raged across the country throughout the month of May), household goods, housing, clothing, fuel and lights, personal care items as well as transport and communication.
Interestingly the retail inflation of 6.3 per cent in May 2021, is much higher than Reserve Bank of India’s target of 2 per cent to 6 per cent, which it has fixed in tandem with the Government for the next five year, i.e. till 2026.