Retail inflation tracks falling food prices

The Consumer Price Index (CPI)-based inflation eased to 3.2% in April, the lowest reading since July 2019.

The decline was driven by food inflation, which fell to 1.8%, the lowest since October 2021, from 2.7% in March.

According to Crisil Intelligence - Research’s Thali Index released last week, the cost of both vegetarian and non-vegetarian thalis in April fell 4% on year, largely due to lower vegetable prices.

Non-food CPI inflation rose to a 20-month high of 4.1%, led by the fuel and light category, which saw inflation rise sharply due to the liquified petroleum gas (LPG) price hike by the government. Core inflation inched up 10 basis points to 4.2% in April but remained below its trend level (measured by the decadal average1) of 4.9%.