Inflation likely to edge higher in May, uneven monsoon, petrol prices blamed
It said that CPI inflation is set to be in the range of 4.6-4.7 per cent and WPI inflation around 3.6-3.8 per cent in May. Arun Singh, Lead Economist D&B India said, "The assumption of a normal monsoon has been one of the primary factors considered for improvement in demand in the current year. However, spatial distribution of rainfall needs to be monitored carefully before setting in firm expectations as uneven distribution of rainfall could flare up food inflation".
Oil prices globally have breached the $80 per barrel mark and the likelihood of a return to normal, more comfortable levels, is slim. The bad news stemming from this is the likely impact on the economy itself. Representational Image, source: IANS