New Delhi, May 13 (IANS) India’s retail inflation fell to 3.16 per cent in April from 3.34 per cent in March to its lowest level since July 2019, as food prices eased further bringing respite to household budgets, according to figures released by the Ministry of Statistics on Tuesday.
Food inflation, which accounts for nearly half of the Consumer Price Index (CPI) basket, slowed to 1.78 per cent in April, compared to 2.69 per cent in March.
This is for the third month in row that inflation has stayed below the RBI’s 4 per cent medium-term target and will enable the central bank to continue with its soft money policy to spur economic growth.
India’s annual inflation rate based on the Consumer Price Index (CPI) declined to 3.34 per cent in March this year, compared to the same month of the previous year, which was the lowest level since August 2019.
Retail inflation in the country has been on a declining trend in recent months. The Reserve Bank’s Monetary Policy Committee has reduced its inflation forecast for 2025-26 to 4 per cent from 4.2 per cent earlier as the “outlook for food inflation has turned decisively positive,” said RBI Governor Sanjay Malhotra during the monetary policy review meeting recently.
The outlook for food inflation has turned decisively positive. The uncertainties regarding rabi crops have abated considerably and the second advance estimates point to a record wheat production and higher production of key pulses over that last year, the RBI Governor pointed out.
He observed that along with robust kharif arrivals, this is expected to set the stage for a durable softening of food inflation.
“The sharp decline in inflation expectations in our latest survey for three months and one year ahead would also help anchor inflation expectations, going ahead,” he pointed out.
Furthermore, the fall in crude oil prices augurs well for the inflation outlook. Concerns on lingering global market uncertainties and recurrence of adverse weather-related supply disruptions, however, pose upside risks to the inflation trajectory.
He said that taking all these factors into consideration, and assuming a normal monsoon, CPI inflation for the financial year 2025-26 is projected at 4.0 per cent, with Q1 at 3.6 per cent; Q2 at 3.9 per cent; Q3 at 3.8 per cent; and Q4 at 4.4 per cent. Malhotra also sees the risks are evenly balanced.
–IANS
sps/na
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by BhaskarLive.in and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of BhaskarLive.in We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, BhaskarLive.in takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
