DBS Bank Senior Economist Radhika Rao on May CPI
This story was originally published at 16:59 IST on 12 June 2026
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NEW DELHI - Radhika Rao, senior economist and executive director, DBS Bank, said the following on India's CPI inflation for May. Retail inflation rose to a 16-month high of 3.93% in May:
May inflation came in slightly below consensus. Contribution from the food segments likely rose on perishables (including vegetables), edible oils, cereals, pulses, milk and related categories, not helped by heatwave conditions in some parts of the country. Concurrently, pump fuel prices were increased in a staggered fashion since mid-May, besides higher CNG and commercial LPG (this month), imparting first and second derivative impact through the coming months.
While a build-up in price pressures is being watched closely against the backdrop of the ongoing West Asia conflict, India's inflation is still below the mid-range of the 2-6% target, and thereby less of an immediate policy concern. This is consistent with the central bank's view that current inflation readings remain manageable. However, policymakers continue to closely monitor upcoming inflation prints as higher input costs gradually filter through from downstream industries to consumers, weather-related risks unfold, and the progress of the monsoon season becomes clearer. End
Compiled by Aaryan Khanna
Filed by Rajeev Pai
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