India’s consumer inflation eased to a cooler-than-expected 2.82% in May, the country’s Ministry of Statistics and Programme Implementation reported Thursday.
The year-on-year headline inflation came in below a Reuters’ median poll estimate of a 3% increase and hits its lowest level since February 2019, according to LSEG data. The print had risen by 3.16% in April.
Food inflation, a key metric, hit 0.99% in May, sharply below the 1.78% of April. Vegetable inflation dipped by 13.7% in April, with cereal price growth up by 4.77% in May.
The Reserve Bank of India has relaxed monetary policy amid easing inflationary pressures. Most recently, the bank slashed its benchmark repo rate by 50 basis points to 5.50%, a level unseen since August 2022.
The move underscored policymakers’ shift toward bolstering economic growth, with the RBI having now cut interest rates for three consecutive meetings since February.
