In May previous year, the retail inflation was at a low of 2.18 per cent.
In its latest policy review earlier this month, the RBI raised the repo rate - at which it lends to banks - by 0.25 per cent to 6.25 per cent, the first hike in more than four years due to growing concerns about inflation stoked by rising global crude oil prices as well as domestic price increases.
According to the NBS report, core inflation stood at 10.7% and decreased by 0.2% in the month of May from the 10.9% recorded in April.
As per the data of the Central Statistics Office (CSO), food inflation rose to 3.10% last month, as against 2.8% in April.
Inflation rate reduces by 0.87% from April. This reduction is the sixteenth consecutive time inflation rate has been dropping since January, 2017.
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.
The report stated that increases were recorded in all the Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index. This was caused by the increase in price of potatoe, yam and other tubers, fish, bread and cereals, Oil and fats, vegetables, coffee, tea and cocoa, Meat, Milk, cheese and eggs. The average annual rate of change of the Food sub-index for the twelve-month period ending May 2018 over the previous twelve-month average was 18.36 percent, 0.53 percent points from the average annual rate of change recorded in April (18.89) percent.
On State-by-State basis, the report said food inflation on an annual basis was highest in Yobe (15.86 per cent), followed by Kebbi (15.62 per cent) and Jigawa (15.56 per cent).
On month-on-month basis, the urban index rose by 1.10 percent in May 2018, up by 0.25from 0.85 percent recorded April, while the rural index also rose by 1.08 percent in May 2018, up by 0.26 percent from the rate recorded in April (0.82) percent.
In its biannual World Economic Outlook, the International Monetary Fund said economic activity in 2018-19 will be lifted by strong private consumption as well as the fading effects of the withdrawal of high-value currencies and implementation of GST.
However, it stated that Kwara, Kogi and Delta recorded the slowest rise in the headline year-on-year inflation at 8.87 per cent, 9.07 per cent and 9.22 per cent, respectively.