Retail inflation eases to 11-month low at 4.83%

New Delhi, May 13

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Retail inflation eased to an 11-month low of 4.83 per cent in April as prices of some kitchen items declined though overall food basket firmed up marginally, according to a government data released on Monday.

Food prices surge

• Inflation in the food basket was at 8.70% in April, marginally up from 8.52% in March
• Inflation in egg, meat, spices, and ‘cereals and products’ was lower in April, while fruits, vegetables, and pulses higher

The Consumer Price Index (CPI)-based retail inflation was 4.85 per cent in March. It was 4.7 per cent in April 2023. The previous low inflation was at 4.31 per cent in May 2023.

The inflation in the food basket was at 8.70 per cent in April, marginally up from 8.52 per cent in March, according to data released by the National Statistical Office (NSO).

Inflation in egg, meat, spices, and ‘cereals and products’ was lower in April, while fruits, vegetables, and pulses were expensive. The index for ‘fuel and light’ in the CPI declined to 4.24 per cent in April on a yearly basis.

The government has tasked the RBI to ensure inflation remains at 4 per cent, with a margin of 2 per cent on either side. According to the RBI, which factors in consumer inflation while arriving at its bi-monthly monetary policy, food price uncertainties continue to weigh on the inflation trajectory going forward.

The central bank has projected the CPI inflation for 2024-25 at 4.5 per cent with the first quarter at 4.9 per cent; second at 3.8 per cent; third at 4.6 per cent; and the fourth at 4.5 per cent. The NSO data further revealed that inflation in urban areas was lower than the national average of 4.11 per cent and higher in rural India at 5.43 per cent.