Retail inflation slips to 4.7% in April from 5.66% in March, touches 18-month low

Latest government data estimates April 2023 CPI inflation at 4.7%—an 18-month low—due to a favourable base. March inflation figure was revised lower to 5.6%.

The government on Friday informed that the retail inflation in the country has slipped to 4.7 per cent in April from 5.66 per cent in March. Consumer Price Index (CPI)-based inflation stayed below the RBI's comfort level of 6% for the second consecutive month.

Retail inflation measured by the Consumer Price Index (CPI) was 5.66% in March 2023 and 7.79% in the same month last year. The rate of retail inflation in April was the lowest since it was 4.48 percent in October 2021.

The National Statistical Office reports that the inflation rate for food was 3.84 percent in April as opposed to 4.79 percent in March and 8.31 percent in the same month last year.

Retail inflation increased from 5.7% in December 2022 to 6.4% in February 2023 as a result of rising cereal, milk, and fruit costs as well as a slower deflation of vegetable prices. The Reserve Bank of India forecasts CPI inflation of 5.2% for FY2023–24, with 5.1% in Q1, 5.4% in Q2, 5.4% in Q3, and 5.2% in Q4, and risks are evenly distributed.

The April CPI index for cereals and goods, eggs, and edible oils was lower compared to March, indicating a decrease in price for each of these categories in April. Other CPI index categories, including food and drink, clothing, household goods and services, health, transportation and communication, education, and personal care and effects, increased in April compared to March.