Retail inflation at 11-month low, but food prices rise | latest news of india

New Delhi: India's consumer inflation fell to an 11-month low of 4.83% in April from a year earlier, according to data released by the Statistics Ministry, down slightly from 4.85% the previous month, but food prices remained at a four-month high. Have reached. And program implementation on Monday.

File photo: Customers buying fruits and vegetables at an open evening market in Ahmedabad (Reuters)

The consumer price index remains within the Reserve Bank of India's (RBI) “tolerance range” of 4% (+/-2%) through September 2023. However, food inflation remained high in April and remained well above the central bank's tolerance band. The limit is 8.70%, compared to growth of 8.5% in March, which remains a matter of concern for policymakers and households.

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On April 5, the RBI's Monetary Policy Committee decided to keep the policy repo rate unchanged at 6.50% citing risks from food prices, marking the seventh time the rate was kept steady.

Even though overall prices have eased, the RBI said the job of reining in inflation is not over.

“The Monetary Policy Committee (MPC) is focused on keeping inflation in line with the target on a sustainable basis. We take satisfaction from the progress made under deflation. But the work is not over yet,” RBI Governor Shaktikanta Das said at a press conference on April 4.

Prices of basic food items and other food items remain high despite a number of measures, including restrictions on exports of rice, wheat and sugar.

On May 4, the government lifted its ban on foreign shipments of onions as officials cited general availability, stable prices and strong production from the Rabi or winter-sown crop, a move that has impressed traders and businessmen in the country's election-bound state of Maharashtra. Farmers will benefit. Largest producer of vegetables.

Additionally, the country imposed a minimum export price (MEP) of $550 per tonne and a 40% tariff on outbound onion shipments. MEP is a minimum price below which traders cannot export. It is a regulatory instrument designed to discourage exporting too much at cheaper rates.

Among major food categories, grain prices rose 8.63% in April from a year earlier, up from 8.4% in March. Vegetables rose by 27.8% compared to a rise of 28.3% in the previous month.

Inflation in pulses, the most common source of protein for most Indians, rose 16.84% in April from a year earlier, compared with a rise of 17.7% in March.

For the second month in a row, rural household prices saw a rise of 5.43%, while the retail inflation rate in urban areas remained almost stable at 4.11% in April.

The RBI has estimated that retail inflation will decline to an average of 4.5% this year from 5.4% in 2023-24.

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