Inflation @ 6%

Inflation accelerated to a five-month high in May on the back of hardening food prices and fuel costs and posing a fresh challenge to the Narendra Modi government, which is battling to tame price pressure and revive the economy .
The annual rate of inflation, based on the monthly wholesale price index, stood at 6.01% in May compared to 5.2% for the previous month and 4.58% during the corresponding month of the previous year. The government also revised upwards the data for March to 6% from the previously reported 5.7%, highlighting the mounting price pressure. Food prices rose an annual 9.5%, while energy costs soared 10.5% year-on-year in May . While onion prices declined in May , potato prices rose 31.4%. Fruit prices rose 19.4% in May , while egg, meat and fish prices grew 12.5% year-on-year.
Food inflation has remained a major policy challenge for both the government and RBI.
More closely watched consumer price inflation has displayed some signs of moderation in May but pressure on food prices remains.
Economists say the government will have to devise a credible strategy to improve supplies and undertake urgent farm reforms and revamp of laws to address supply-side problems.

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