The consumer-price index (CPI) based inflation has remained within the Reserve Bank of India’s (RBI) tolerance band of 2-6 per cent for the second consecutive month. The number can be attributed to moderation in food and fuel prices apart from the low base effect. The easing price of cereals and vegetables in addition with lower energy prices have also pulled back the inflationary levels.
A R DAS
India’s consumer price index (CPI)-based inflation fell to 4.7 per cent in April, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed on Friday. In the month of March, the retail inflation was 5.66 per cent.
The food inflation also eased to 3.84 per cent in April. It was 4.79 per cent in March.
However, the Index of Industrial Production (IIP) fell sharply to 1.1 per cent in March from 5.6 per cent in February.
“For the month of March 2023, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stands at 150.5. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of March 2023 stand at 154.2, 146.0 and 188.0 respectively,” the Centre’s announcement said.
“As per Use-based classification, the indices stand at 158.2 for Primary Goods, 120.9 for Capital Goods, 158.2 for Intermediate Goods and 178.7 for Infrastructure/ Construction Goods for the month of March 2023. Further, the indices for Consumer durables and Consumer non-durables stand at 118.1 and 145.6 respectively for the month of March 2023,” it added.
The April’s inflation numbers were the lowest in 18 months. It was for the second month in a row that retail inflation remained within the Reserve Bank of India’s (RBI) comfort zone of below 6 per cent.
Retail inflation rose from 5.7 per cent in December 2022 to 6.4 per cent in February 2023 on the back of higher prices of cereals, milk and fruits and slower deflation in vegetable prices. The RBI has projected the CPI inflation at 5.2 per cent for FY2023-24, with 5.1 per cent in Q1, 5.4 per cent in Q2, 5.4 per cent in Q3, and 5.2 per cent in Q4, and risks evenly balanced.