As of April 2024, the Indian government’s data shows that retail inflation in India has dipped to an 11-month low, reflecting the country’s most recent economic conditions. It was around 4.83%, slightly lower than the 4.85% recorded in the previous month, but it remained within the tolerance limit of RBI (Reserve Bank Of India), i.e. 2%—6%.
However, according to the data released by the National Statistical Office (NSO), the inflation rate in the food basket spiked to 8.7% in April from 8.52% in March. The NSO further mentioned that the overall inflation rate in India was around 0.48% in April 2024.Â
Sequentially, breaking down the inflation for various commodities, the inflation for vegetables fell slightly from 28.3% in March to 27% in April. On the other hand, the inflation rates for cereals and pulses were recorded at 8.63% and 16.84%, respectively, annually.
Inflation rates for ‘Clothing & Footwear’, ‘Housing’, and ‘Fuel & light’, which ranks among the top 5 groups, witness a contraction in inflation rates. For fuel & light, the inflation rate contracted by 4.24% in April 2024, and rates for other groups stood at 2.85% and 2.68%, respectively.
Also, read about the retail food inflation in February 2024.
RBI governor Shaktikanta Das addressed the outcomes of the first bi-monthly Monetary Policy Committee (MPC) meeting of FY25. He not only emphasized inflation as a significant challenge but also expressed a hopeful outlook. He noted that inflation appears to be reverting to the desirable threshold of 4%, a positive sign for the Indian economy.
Governor Das highlighted the downward trajectory of inflation, driven by favourable base effects, but also acknowledged the persistent pressure from service prices. Despite a decline in headline inflation for January- February 2024 to 5.1%, uncertainties persist due to erratic movements in food prices, underscoring the complex nature of the inflation dynamics.
