0719 GMT June 23, 2018
Analysts polled by Reuters had forecast May's annual increase in the consumer price index at 4.83 percent, compared with April's provisional 4.58 percent. The forecast for May ranged from 4.1 percent to 5.7 percent, Reuters reported.
India's retail inflation jumped further in May to a four-month high, primarily driven by a surge in energy prices, according to the Reuters poll, suggesting more policy tightening from the central bank is coming.
"Both headline and core inflation are in line with our expectations. Although both these measures may peak in the next reading, core may turn out to be sticky around 5 percent”, said a chief economist.
"Headline inflation could also remain around five percent by March 2019, and could potentially edge higher depending on MSP decision by the government. Accordingly, we expect the Monetary Policy Committee to hike policy rates by 25 bps by October."