India’s retail inflation declines to 4.7% in April

Based on inputs by Shahid Kazi

India’s CPI inflation in April 2023 declined to its 18-month low of 4.7 per cent, according to the official data released on Friday by National Statistical Office. This is the second consecutive month for the retail inflation to come under the RBI’s tolerance limit of 4 per cent (+/- 2 per cent). However, the country’s industrial production based on IIP rises 1.1 per cent in March 2023, against 5.6 per cent in the preceding month.

According to the National Statistical Office, the retail inflation in urban areas eased to 4.85 per cent and in rural areas to 4.68 per cent. The retail inflation based on Consumer Price Index (CPI) was 5.66 per cent in March 2023 and 7.79 per cent in the year-ago period. Retail inflation in April is the lowest since October 2021 when it was at 4.48 per cent.

According to the NSO, the inflation in the food basket was 3.84 per cent in April, as against 4.79 per cent in March and 8.31 per cent in the year-ago period.

Reserve Bank of India has projected the CPI inflation at 5.2 per cent for FY2023-24, with 5.1 per cent in Q1, 5.4 per cent in Q2, 5.4 per cent in Q3, and 5.2 per cent in Q4, and risks evenly balanced.

IIP Growth In March 2023

India’s industrial production rose 1.1 per cent in March, according to official data released on Friday. Factory output measured in terms of the Index of Industrial Production (IIP) grew 2.2 per cent in March 2022. The data released by the National Statistical Office (NSO) showed that the manufacturing sector’s output increased 0.5 per cent in March 2023. Mining output rose 6.8 per cent during the month under review. Power output declined by 1.6 in March. The IIP grew 5.1 per cent in 2022-23 as against a growth of 11.4 per cent in 2021-22.

(With PTI Inputs)

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