Increased expectation of reduction in interest of home and car loans, retail inflation at 2 year low

Retail Inflation Data For May 2023: Retail inflation has come down again. For the month of May, the retail inflation rate has come down to 4.25 percent, which was 4.70 percent in April. This is the fourth consecutive month when the retail inflation rate has declined. Last year in May 2022, the retail inflation rate was 7.04 percent. There has also been a big decline in the food inflation rate and it has reached below 3 percent. Food inflation came down to 2.91 per cent in May from 3.84 per cent in April 2023. While the food inflation rate in May 2022 was 7.97.

No relief from milk inflation!

Even though there has been a decrease in the retail inflation rate in the month of May, the prices of milk and its related products still remain at 8.91 percent. Compared to April 2023, there has been an increase in the price of milk. In April, the inflation rate of milk and its related products was 8.85 percent. The inflation rate of food grains and its related products is 12.65 percent, which was 13.67 percent in April. Inflation in spices has increased to 17.90 percent, which was 17.43 percent in April. Inflation in pulses has been 6.56 per cent, which was 5.28 per cent in April.

Relief from inflation of edible oil

However, the inflation rate of Oil and Fats has been -16.01 per cent during this period. The inflation rate of greens-vegetables has been -8.18 percent, the inflation rate of meat and fish -1.29 percent, the inflation rate of sugar has been 2.51 percent.

Relief from costly debt!

The reduction in retail inflation can provide maximum relief to those who are troubled by expensive EMIs. In the coming days, the expectation of cheap loans has started increasing. RBI has estimated the retail inflation rate to be 5.1 percent for the financial year 2023-24. Whereas in the April to June quarter, it has been estimated to be 4.6 percent. But in May, the retail inflation rate has reached close to 4 percent. And if this trend continues, then in August 2023, when there will be a meeting of the Monetary Policy Committee of RBI, relief can be expected.

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