bloodbath in the markets today, but relieving news for our pockets. Inflation has cooled from it's eight year high of 7.79% in the month of April retail inflation as east to 7.4% in May and you might wonder what really changed in this one month. Interestingly, the urban population didn't see much of a relief. Urban inflation was in fact 7.8% almost the same as 7.9% in April. What really took down the inflation figure is rural inflation, which witnessed a sharp decline from 8.38% in April 27.1% in May. So almost all the price relief was felt in rural India Now are the possible reasons behind the relief of fuel excise duty cuts by the central government and a rate hike by the Reserve Bank in the month of May. Now, food inflation is down to 7.97% compared to 8.31% last month, But it's important to note that we're not in a comfortable state just yet. Inflation is still very high compared to May last year, when it stood at 6.3%. It's still much above RBI's comfort level of 6%. In fact, it has been above 6% for the past five months. And as we know, the Reserve Bank expects inflation to stay above 6% till December, so the worst might not be over just yet. Now, let's look at the categories that are hurting budgets the most. The prices of essentials for all of us. Fuel in light. Inflation is at the highest at 9.5% followed by clothing and footwear at 8.8% followed by food and beverages at 7.8%.
