Retail inflation eases marginally in April but no respite in food inflation

New Delhi [India], May 13 : India's retail inflation eased to 4.83 per cent in April, down from 4.85 per cent in March. However, consumer food price inflation surged to 8.70 per cent from 8.52 per cent last month, according to data from the Ministry of Statistics & Programme Implementation.

As per the data the food inflation rose by 1.03 per cent in urban areas and 0.59 per cent in rural areas, with combined food inflation in India increasing by 0.74 per cent.

The National Statistical Office, under the Ministry of Statistics and Programme Implementation, released the All India Consumer Price Index (CPI) and Consumer Food Price Index (CFPI) for Rural (R), Urban (U), and Combined (C) for April 2024. The data indicates an overall decline in inflation but a surge in food inflation.

"The annual inflation rate based on all India Consumer Price Index (CPI) number is 4.83 per cent (Provisional) for the month of April, 2024 (over April, 2023). Corresponding inflation rate for rural and urban is 5.43 per cent and 4.11 per cent, respectively," stated the Ministry of Statistics & Programme Implementation.

Among the top five groups, the year-on-year inflation in 'Clothing & Footwear', 'Housing', and 'Fuel & light' has decreased since last month, the ministry added.

"Unchanged headline and core inflation reading from previous month will continue to provide respite to the MPC. However, erratic weather and heatwaves should keep the overall sentiment cautious. We do not expect much change to RBI's narrative for now, as a prolonged pause in policy rates remains the base case" said Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank.

The Reserve Bank of India during the monetary policy meeting projected the CPI inflation for 2024-25 at 4.5 per cent, with Q1 at 4.9 per cent; Q2 at 3.8 per cent; Q3 at 4.6 per cent; and Q4 at 4.5 per cent.

The ministry highlighted that price data were collected from selected 1114 urban Markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO (National Statistical Office), MoSPI on a weekly roster.

During April 2024, NSO collected prices from 99.9 per cent of villages and 98.5 per cent of urban markets, with market-wise prices reported at 89.8 per cent for rural and 93.2 per cent for urban areas.

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