Retail inflation at a six-year low in April

Retail inflation eased in April to its slowest pace in over six years on the back of lower food prices, potentially allowing the central bank to cut its key policy rate for a third successive time to spur economic growth.

- Rhik Kundu

The Consumer Price Index (CPI) rose 3.16% year-on-year in April, down from 3.34% in March, 3.61% in February, and 4.83% in the same month last year, according to data from the ministry of statistics and programme implementation.

A Mint poll of 21 economists had projected retail inflation easing to 3.2% in April, marking a third consecutive month of sub-4% print and the longest streak of continuous inflation easing in at least five years. The Reserve Bank of India (RBI) aims to keep CPI inflation at 4%, within a range of 2%.

Food inflation in April eased to 1.78% from 2.69% in March, 3.75% in February, and 4.83% in the same month last year.