India's provisional consumer price inflation rate for May stood at 4.87% compared to the same month past year, data released by the Ministry of Statistics and Programme Implementation showed on Tuesday.
Also, on a month-on-month basis, the Food sub-index increased by 1.33% in the month of May 2018, it went up by 0.42% from 0.91% that was recorded in the previous month of April.
The retail inflation rate in urban areas was 4.88% in May, against 4.42% in April.
"This is 0.87% points less than the rate recorded in April 2018 13.34% and represents the sixteenth consecutive disinflation since January 2017", the report read. This is less than 15.47 percent reported in April, while the corresponding rural inflation rate in May 2018 is 14.53 percent compared to 14.95 percent recorded in April.
Meanwhile, NBS said the composite food index rose by 13.45 per cent in May compared to 14.80 per cent in April.
Ruth Gregory, senior United Kingdom economist at Capital Economics said oil prices are expected to fall later this year and overall "the inflation figures have not altered our view that the [Bank of England's] MPC will probably press ahead and raise interest rates in August".
The rise in the index was attributed to increases in prices of some staple food items like potatoes, yam and other tubers, vegetables, fish, bread and cereals, fruits and meat.
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The spike in inflation also came on back of fuel prices after global oil prices hit a 3-1/2-year high last month, led by increasing worries of supply constraints from US President Donald Trump's decision to withdraw from the 2015 Iran nuclear agreement.
The CPI, which measures inflation rate in the economy within a period, showed inflation rate dropping further by about 0.87 per cent basis points from 12.48 per cent in April to about 11.61 per cent during the month.
On Tuesday, the ONS said wage growth slowed to 2.8% in the three months to April from 2.9%.
The corresponding twelve-month year-on-year average percentage change for the urban index is 15.10 percent in May 2018.
Also, it noted the rural index rose by 1.08 per cent in May, up by 0.26 per cent from the rate recorded in April (0.82) per cent.
Ben Brettell, senior economist at Hargreaves Lansdown, said: "Some will say these figures add weight to the case for higher rates".
In addition, it stated that the rural inflation also eased 11.20 per cent in May from 12.13 per cent in April. Kogi followed with 9.07% while Delta recorded 9.22% on a year-on-year all item basis in May, 2018.
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