India’s retail inflation eases to 4.83% in April

India’s retail inflation rate edged down slightly to 4.83 per cent in April, compared to 4.85 per cent in March, offering a glimmer of hope in the battle against rising prices, Reuters reported, citing government data published on Monday.

Lower fuel prices played a key role in the slight decline. Fuel and power inflation dropped to 4.24 per cent in April, compared to 3.24 per cent the previous month.

Despite the overall decrease, food inflation continues to be a cause for concern. The cost of essential food items rose 8.70 per cent year-on-year in April, exceeding the 8.52 per cent increase recorded in March.

This trend has persisted since November 2023, with food inflation consistently exceeding eight per cent.

The data revealed concerning spikes in specific food groups. Cereal prices grew by 8.63 per cent, compared to 8.37 per cent in March.

Pulses witnessed a significant rise of 16.84 per cent, up from 17.71 per cent the previous month. Vegetable prices saw the sharpest increase, jumping a worrying 27.8 per cent in April.

The Reserve Bank of India (RBI) expressed concerns in its latest bulletin that ongoing heatwaves in parts of the country could further exacerbate food price inflation.