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Retail inflation rate fell to 3.16% in April; Know how many years' record was broken
There is some relief news on the inflation front. Retail inflation rate has fallen to a 70-month low. It was recorded at 3.16% in April. Experts say that due to the low inflation rate, there is almost a 100 percent possibility that the RBI will cut the repo rate in the upcoming meeting of the Monetary Policy Committee.
As the price of vegetables, the price of pulses, and the price of spices have fallen, the retail price inflation for the month of April stood at a 70-month low of 3.16%. That is, a six-year record has been broken. The retail price inflation for the month of July 2019 was 3.15%.
In October last year, the retail price rise stood at 10.87%, but since then, the retail price rise has been declining consistently. The retail price rise stood at 3.34% this March. The retail price rise of food products eased to 1.78% in April, the weakest since October 2021.
The food item retail inflation fell to 2.69% in March this year. Following the retail inflation dropping to a six-year low, the RBI is likely to reduce the interest rates for the second time this coming June.
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Anand Rathi Group Chief Economist and Executive Director Sujan Hazra said that due to the softening of crude oil prices along with food items, retail inflation is expected to remain below 4%, due to which there is full scope for the RBI to cut the repo rate in the upcoming meeting of the Monetary Policy Committee. The reduction in inflation will help the government to accelerate the development policy and the corporate sector to increase income.
Last month, vegetable prices fell by 11%, pulses and legumes by 5.23%, spices by 3.04%, and meat and fish prices by 0.35% as compared to April last year. In April this year, the prices of edible oil and vegetable oil saw the highest increase of 17.42% as compared to April last year.
In April, retail prices of fruits increased by 13.80%, cereals by 5.35%, milk by 2.72%, sugar by 4.59%, and non-alcoholic beverages by 4.40%.
In April, Telangana recorded the lowest retail inflation rate of 1.26%. Delhi's retail inflation rate was 1.77% during this period, while Kerala recorded the highest inflation rate of 5.94%. Retail inflation in Karnataka was 4.26%, in Punjab 4.09%, and in Jammu and Kashmir it was 4.25%.
