Retail inflation eases to 4.29% in April as food prices fall (Lead)

    13

    New Delhi, May 12 | Lower food prices sequentially eased India’s retail inflation in April as the Consumer Price Index (CPI) decreased to 4.29 per cent from 5.52 per cent in March.

    According to the data furnished by the National Statistical Office (NSO), the CPI Urban rose by 4.77 per cent last month from 6.52 per cent in March.

    Similarly, the CPI Rural climbed by 3.82 per cent in April from 4.61 per cent in March.

    As per the NSO data, the Consumer Food Price Index increased to 2.02 per cent last month from a rise of 4.87 per cent in March.

    The CFPI readings measure the changes in retail prices of food products.

    In terms of CPI YoY inflation rate, pulses and products’ prices jumped by 7.51 per cent, respectively, in April 2021.

    Furthermore, meat and fish prices rose by 16.68 per cent, eggs became dearer by 10.55 per cent and the overall price of food and beverages category was up 2.66 per cent.

    However, vegetable prices declined by 14.18 per cent.

    Besides, as per the official data, the inflation rate for fuel and light was at 7.91 per cent.

    “The sharp correction largely owes to the favourable base effect owing to last year’s pandemic-related lockdown. Some select food items or perishables have seen unseasonal fall in April,” said Madhavi Arora, Lead Economist, Emkay.

    “Besides, supply chains are not much disrupted this year despite soft lockdowns vs 2020 during same period. However, local lockdowns, if persist, could impact services demand negatively, will put downward pressure on Q1FY22 core inflation and act as a balancing factor to emerging upside risks to inflation.”

    Suman Chowdhury, Chief Analytical Officer, Acuite Ratings & Research, said: “Expectedly, the CPI print for April 2021 has benefited from the base effect given the national lockdown in the same period of the previous year and the elevated prices therein driven by supply constraints.”

    “However, we note that some categories in the food basket such as meat and fish, edible oil, fruits and pulses continue to show high inflation both on a YoY and sequential basis, reflecting structural supply bottlenecks that might have got further aggravated by the fresh disruption brought in by the second Covid wave.”

    Source: IANS

    Post Disclaimer by BhaskarLive.in

    The information contained in this post is source form the news agency or PR agency. We do not take any responsibility of accuracy of information. We have not made any modification or changes in original source content. This information only for general information purposes only. The information is provided by BhaskarLive.in and while we Endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.

    Next Story

    Weekly Fundamental Market Outlook

    Weekly Fundamental Market Outlook

    Indian share market posted its first weekly gain in Jun by rising 2.7%.

    This week, the Indian Stock Market rebounded strongly and ended with first weekly gain of 2.7% in June as a drop in commodity prices offered some relief from broadening inflationary pressures. Copper prices, which are often seen as a bellwether for economic output due to their wide range of industrial and construction uses, are heading for their worst week in a year, while oil prices have dropped over concerns of slumping demand.

    While the US recessionary fears are still at the forefront, but the slide in commodity prices has lifted the mood of stock market.Cheaper oil is usually beneficial for oil-importing countries such as India.

    Domestically, on sectorial basis, Auto and FMCG are the top gainers, while Metal index is the top losers. On stock basis, Hero MotoCorp, Eicher Motors, Hindustan Unilever, Maruti Suzuki and M&M were the top gainers and Tata steel, UPL, Reliance Industries, hindalco Inds and Coal India were the top losers.

    In the next week, investors will keep a close eye on crude oil price movement, commodity prices, US economic activity and the geopolitical development.

     

    Post Disclaimer by BhaskarLive.in

    The information contained in this post is source form the news agency or PR agency. We do not take any responsibility of accuracy of information. We have not made any modification or changes in original source content. This information only for general information purposes only. The information is provided by BhaskarLive.in and while we Endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here