Retail inflation eased to 3.16 per cent in April. This marks its lowest level in almost six years. The drop was largely driven by falling prices of vegetables, fruits, pulses, and other protein-rich items. This figure remains well within the Reserve Bank of India’s comfort zone. For comparison, inflation stood at 3.34 per cent in March and 4.83 per cent in April last year. The last time it was this low was back in July 2019, at 3.15 per cent.
Food inflation dropped to 1.78 per cent in April, down from 2.69 per cent in March and a sharp fall compared to 8.7 per cent in the same month last year.
– Vegetable prices dropped by 11 per cent, steeper than the 7.04 per cent decline in March.
– Cereal prices increased by 5.35 per cent, slightly lower than the 5.93 per cent rise in March.
– Pulse prices fell by 5.23 per cent, compared to a 2.73 per cent decline in the previous month.
The Reserve Bank of India aims to keep inflation around 4 per cent, with a margin of 2 per cent on either side. As prices have eased, the central bank has cut its key interest rate by 50 basis points in two steps. Looking ahead, it expects inflation to average 4 per cent for 2025-26, with quarterly estimates at 3.6 per cent in Q1, 3.9 per cent in Q2, 3.8 per cent in Q3, and 4.4 per cent in Q4.
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