Correct Answer : Option (B) - 4.83%
India’s retail inflation has eased marginally to touch an 11-month low of 4.83 per cent on an annual basis in April, according to government data released on Monday. This slight dip from the previous month’s figure of 4.85 per cent aligns closely with the projections of a Reuters poll of 44 economists, who estimated the number to come down to 4.80 per cent. Importantly, this figure falls within the Reserve Bank of India’s (RBI) tolerance band of 2-6 per cent.
Food Basket Inflation Remains Elevated :
Despite the overall moderation in inflation, the inflation rate in the food basket grew at 8.7 per cent in April, up from 8.52 per cent in March, as per data from the National Statistical Office (NSO). Notably, India’s vegetable inflation slightly decreased to 27.80 per cent year-on-year compared to 28.30 per cent in March. However, inflation rates for cereals and pulses, crucial components of India’s staple diet, remained elevated at 8.63 per cent and 16.84 per cent, respectively.
Contractions in Fuel and Light Inflation :
In contrast to the food sector, the inflation rate for fuel and light witnessed a contraction of
(-)4.24 per cent in
April, reflecting a downward trend in energy prices.
Inflation Trends Across Various Commodities :
Among the top five groups, the year-on-year inflation in categories like ‘Clothing & Footwear’, ‘Housing’, and ‘Fuel & Light’ has decreased since the previous month. Specifically, the inflation rates for clothing & footwear and the housing sector stood at 2.85 per cent and 2.68 per cent, respectively.
