CPI Inflation Hits at 11.76% in May 2024
CPI inflation in May 2024 hits at 11.8% YoY in May 2024, the lowest reading in 29 months, compared to 17.3% in April 2024. This was better than industry expectations of 13.7%. This brings the 11MFY24 CPI reading to 24.52%.
On a MoM basis, CPI inflation witnessed a significant fall of 3.2bps, led by a 783bps decline in Food, followed by a 163bps decline in Transport, and a 133bps decline in Housing, Water, and Electricity segments.
Within the Food segment, prices of tomatoes, onions, and chicken fell in the range of 35-51% MoM, followed by a decline in wheat and wheat flour prices in the range of 20-22% MoM.
In the Transport category, fuel prices declined by 3.2%, while in the Housing, Water, and Electricity segments, electricity charges and liquefied hydrocarbons fell by 4-9% MoM. Inflation Hits 20.68% in March, the lowest after 21 months
Core inflation (NFNE) in urban areas fell to 12.3% YoY in May 2024, compared to 13.1% YoY in April 2024. On a MoM basis, core inflation increased by 0.4%.
In rural areas, core inflation clocked in at 17.0% YoY compared to 19.3% YoY in April 2024. On a MoM basis, core inflation increased by 0.5%.
We expect inflation to almost halve in FY25, averaging 13.0-13.5%, compared to an estimated FY24 average inflation rate of 24%” Topline said in a report.
