Retail inflation inches up to 5-month high in May

Despite the staggered increase in retail fuel prices during the past month in the backdrop of persisting conflict in West Asia, fuel inflation remained contained at 0.8% in May, though marginally higher than 0.7% in April. Economists expect the pass through to become visible in June. Dipti Deshpande, principal economist at Crisil said food inflation rose due to persistent high temperatures, which drove up prices of vegetables, dairy products and eggs.