Retail inflation marginally eases to 4.83% in April

CPI data for April: The rate of retail inflation eased marginally to 4.83 per cent in April, partly owing to the lower fuel prices, even as food prices remained on the higher side, government data revealed on Monday. The Consumer Price Index (CPI) based retail inflation was 4.85 per cent in March this year. 

Inflation in the food basket was at 8.70 per cent in April, marginally up from 8.52 per cent in March, as per data released by the National Statistical Office (NSO). Food inflation has been a primary concern, which economists say will see some easing as the India Meteorological Department (IMD) has forecast an above normal monsoon this year. 

As per government data, annual retail inflation in April was 4.83 per cent, down from 4.85 per cent in March.  The food inflation, which comprises nearly half of the overall consumer price basket, witnessed  8.70 per cent rise in April, compared with an 8.52 per cent rise during March.

DK Srivastava, Chief Policy Advisor, EY India said the CPI inflation in April 2024 continues the downward trend since December 2023.  “It is the second successive month when inflation is below 5 per cent. Although food inflation is marginally higher at 8.7 per cent, the downward pressure emanates from petroleum-related commodity groups namely, fuel and light and transport and communication services,” Srivastava added. 

“Core inflation has also trended downwards at 3.2 per cent, which is the lowest in the 2012 base CPI series. If this trend continues, CPI inflation in 1Q of  FY25 may turn out to be marginally lower than RBI’s projection of 4.9 per cent,”  added Chief Policy Advisor, EY India Srivastava. 

(With agency inputs)