Page 19 - Policy Economic Report - June 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

• The food inflation rate in May eased to 8.62 per cent from 8.75 per cent in April. However, it has
remained higher than the 3.3 per cent registered in May 2023.

• The rural inflation dipped to 5.28 per cent in May from 5.43 per cent. Meanwhile, urban inflation
rate stood at 4.15 per cent in May.

• The fuel and light inflation rate for May contracted to 3.83 per cent as against a contraction of
4.24 per cent in April.

• The number has remained within the Reserve Bank of India's (RBI) tolerance band of 2-6 per cent.
• Assuming a normal monsoon next year, CPI inflation for 2024-25 is projected at 4.5 % with Q1 at

5.0 %; Q2 at 4.0 %; Q3 at 4.6 %; and Q4 at 4.7 %. The MPC has decided to keep the policy repo
rate unchanged at 6.50 %.

Unemployment in India

• According to the latest data available from the Centre for Monitoring Indian Economy (CMIE),
unemployment rate in India saw a significant drop in May 2024 to 7 per cent, which was its lowest
recorded since September 2022. In April 2024, the unemployment rate was at a much higher 8.1 per
cent.

Figure 14: Unemployment rate in India

Source- CMIE Page | 18

JUNE 2024