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India Inflation Accelerates Further

India's consumer price inflation accelerated further in May, in line with economists' expectations, figures from the National Statistical Office showed on Wednesday.

The consumer price index rose 3.05 percent year-on-year in May after a 2.99 percent increase in April, which was revised from 2.92 percent.

In May 2018, inflation was 4.87 percent.

Food price inflation accelerated to 1.83 percent from 1.10 percent.

On a month-on-month basis, the CPI 0.57 percent in May and food prices grew 1.24 percent.

The Reserve Bank of India cut the key interest rate by a quarter basis point this month, the third in a row, to its lowest level since 2010 and tweaked its monetary policy stance to accommodative from neutral.

Considering the impact of rate cuts and expectations of a normal monsoon, the bank revised down the path of CPI inflation to 3.0-3.1 percent for the first half of the fiscal 2020 and to 3.4-3.7 percent for the second half.

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