Report: Retail Inflation in India Registers Partial Decline to 4.83% in April

During April, retail inflation in the country saw a partial decline, marking 4.83%, compared to 4.85% in March. However, food inflation surged to 8.70%, up from 8.52% the previous month. 

According to data from the Ministry of Statistics, urban areas experienced a 1.03% increase in food inflation, while rural areas saw a 0.59% rise. This contributes to an overall inflation rise of 0.74%.

Contrasting Trends: Overall Decline, but Food Inflation Rises

According to the Ministry of Statistics, there has been a decrease in overall inflation during April, while food inflation has shown an upward trend. 

In April, the Consumer Price Index (CPI) based inflation stood at 4.83%, with rural and urban areas experiencing food inflation rates of 5.43% and 4.11%, respectively.

Fuel and Power Costs Decline, but Food Inflation Rises

In April, retail inflation, which is consistently tracked under the Reserve Bank of India’s (RBI) 2-6% threshold, recorded a rate of 4.24%, driven by a decrease in fuel and power costs. 

However, during the same period, food inflation surged to 8.70%, up from 8.52% in March. Additionally, the prices of fruits escalated, rising from 3.07% in March to 5.22% in April.

RBI Forecasts CPI Inflation at 4.5% for 2024-25

During its monetary policy meeting, the Reserve Bank of India (RBI) projected a Consumer Price Index (CPI) inflation rate of 4.5% for the fiscal year 2024-25. 

The forecast indicates variations across quarters, with the first quarter at 4.9%, the second quarter at 3.8%, the third quarter at 4.6%, and the fourth quarter at 4.5%.