India Inflation Slows In May

(RTTNews) - India's consumer price inflation slowed in May but remained above the central bank's tolerance band, official data showed on Monday.

Consumer price inflation eased to 7.04 percent in May from a near eight-year high of 7.79 percent in April. In the same month last year, inflation was 6.30 percent. Economists had forecast inflation to slow to 7.10 percent.

The central bank targets inflation of 4.00 percent, with a tolerance band of 2.00 percent at the lower end and 6.00 percent on the upper side.

Among major components, cost of fuel and light registered the biggest annual increase of 9.54 percent. This was followed by an 8.85 percent rise in clothing and footwear and 7.84 percent increase in food and beverages prices.

Data showed that food price inflation slowed to 7.97 percent in May from 8.31 percent a month ago.

Month-on-month, overall consumer prices gained 0.94 percent and food prices moved up 1.59 percent in May.