India’s retail inflation eases slightly

NEW DELHI, May 13 (Reuters): India's retail inflation rate eased slightly in April, partly due to lower fuel prices, although food prices remained elevated, government data showed on Monday.

Annual retail inflation in April was 4.83 per cent, down from 4.85 per cent in March. Economists polled by Reuters had forecast April retail inflation at 4.80 per cent.

Food inflation, which accounts for nearly half of the overall consumer price basket, rose 8.70 per cent in April, compared with a 8.52 per cent rise in the previous month. Food inflation has been accelerating at over 8 per cent year-on-year since November 2023.

The inflation rate for cereals was 8.63 per cent, compared with 8.37 per cent in the previous month and pulses rose 16.84 per cent, compared with 17.71 per cent in March. Vegetable prices rose 27.8 per cent in the month of April.

With parts of the country experiencing a heatwave, food prices continue to pose an additional risk to India's inflation trajectory, according to the latest Reserve Bank of India (RBI) bulletin.