India's annual inflation rate based on the general consumer price index accelerated in May, preliminary data released by the Central Statistics Office showed Monday.
The consumer price index increased 10.36 percent annually in May, after rising 10.26 percent in April. The inflation rate for rural areas eased to 9.57 percent in May from 9.67 percent in the previous month, while the rate for urban areas increased to 11.52 percent from 11.10 percent.
Prices of food and beverages advanced 10.66 percent year-on-year, while clothing, bedding and footwear prices moved up 11.36 percent in May. There was a 10.74 percent annual gain in fuel and light prices, data showed.
The Reserve Bank of India at Monday's rate-setting session kept the repo rate, the rate at which the central bank lends to banks, at 8.00 percent. The reverse repo, the rate at which the central bank borrows from banks, was retained at 7.00 percent. Meanwhile, the cash reserve ratio, or CRR, was left unchanged at 4.75 percent.
by RTT Staff Writer
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