India’s CPI inflation slows to 4.75% in May

Annual CPI inflation in India has slowed further, to 4.75% in May from 4.83% in April, data showed on Wednesday.

In comparison, a consensus of analyst estimates had pointed to an acceleration to 4.9%.

It has been the lowest CPI inflation in a year.

The inflation rate has remained within the central bank’s medium-term target range of 2%-6% and has approached the midpoint of that range.

In May, inflation eased for housing (2.56% YoY from 2.68% YoY in April) and for clothing and footwear (2.74% YoY from 2.85% YoY in April).

Meanwhile, food inflation remained mostly stable, at 8.69%, compared to 8.7% in April.

In month-over-month terms, consumer prices in India rose 0.48% in May, or at the same rate as in April.

The Indian Rupee was little changed on the day against the US Dollar, with the USD/INR currency pair last trading at 83.5440.