India’s retail inflation based on Consumer Price Index (CPI) slowed to four-month low of 5.91% in March, mainly due to easing prices of kitchen essentials like vegetables, eggs and meat. The retail inflation, which is factored in by the RBI to arrive at its monetary policy, has been on decline since last month. The previous low was 5.54% in November 2019. Besides, the inflation in the food basket was 8.76% in March 2020, lower from 10.81% in the previous month.
As per the data of the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation, the CPI (Rural, Urban, Combined) on Base 2012=100 for March 2020, stood at 6.09%, 5.66% and 5.91%, respectively, compared to 1.80%, 4.10% and 2.86%, respectively in March 2019. The index value of CPI for combined stood at 148.7. The data also showed that consumer food price index (CFPI) for all India Rural and Urban for March 2020 stood at 8.88% and 8.59%, respectively, compared to -1.46% and 3.47%, respectively in March 2019. The index value of CFPI for combined stood at 147.8 for the month of March.
As per the data, inflation in eggs was 5.56% during March as compared to 7.28% in the previous month. The rate of price rise in vegetables was 18.63% as against 31.61% in February. The rate was also slower in fruit prices as well as pulses and related products. However, the inflation in milk and products was slightly higher in March over February. The data also showed that inflation in fuel and light segment was marginally higher at 6.59% in March, compares with 6.36% in February.
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