India's retail inflation eases to 7.04% | All you need to know

India's retail inflation in the month of May eased to 7.04 per cent, according to the government data.

The retail inflation in May was estimated at 7.04 per cent, according to government data released on Monday. The inflation has eased from a near eight-year high of 7.79 per cent recorded in April.

Inflation in the food basket was 7.97 per cent in May this year, marginally lower than 8.31 per cent in the previous month, as per the data released by the National Statistical Office (NSO).

This came after the Reserve Bank of India (RBI) last week upped its inflation projection for the current fiscal to 6.7 per cent from 5.7 per cent forecast in April.

Meanwhile, a rise in price across all items from fuel to vegetables and cooking oil pushed WPI or Wholesale Price Inflation to a record high of 15.08 per cent in April and retail inflation to a near eight-year high of 7.79 per cent.

Retail inflation tracked by the Consumer Price Index (CPI) measures changes in prices from a retail buyer's perspective.

RBI Governor Shaktikanta Das said the upside risk to inflation persists and the recent spike in tomato prices would fuel food inflation. Also, high global crude oil prices would add to the upside pressure on inflation.

The upward revision in inflation projection comes as domestic retail inflation has remained above RBI's comfort level of 6 per cent for four months in a row, mainly due to the Russia-Ukraine war which has impacted the prices of commodities across the globe.