Retail inflation hits 11-month low of 4.83% in April

New Delhi: Government data released on Monday revealed that retail inflation dropped to an 11-month low of 4.83 per cent in April, driven by a decrease in prices of certain kitchen essentials. Despite this, the overall food basket saw a slight uptick, according to the Consumer Price Index (CPI).

In March, CPI-based retail inflation stood at 4.85 per cent, while it was recorded at 4.7 per cent in April 2023. The last time inflation was this low was in May 2023, at 4.31 per cent.

Data from the National Statistical Office (NSO) indicated that inflation in the food basket reached 8.70 per cent in April, a marginal increase from 8.52 per cent in March.

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 Reserve Bank of India (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 forth 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.

The highest inflation was witnessed in Odisha at 7.11 per cent and lower in Delhi at 2.17 per cent.

States recording higher inflation than the national average were Andhra Pradesh, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Assam, Bihar, Chhattisgarh, Haryana, Karnataka, Kerala, and Madhya Pradesh.

NSO collects the price data from selected 1,114 urban markets and 1,181 villages covering all states/UTs on a weekly roster.