Retail inflation touches 6-year low of 3.16% in April
What's the story
India's retail inflation has hit its lowest level in over six years, provisional government data released today showed.
The Consumer Price Index (CPI) recorded a year-on-year increase of 3.16% in April, down from 3.34% in March, 3.61% in February, and 4.83% for the same month last year.
Food inflation also fell to 1.78% in April from the previous month's 2.69%, the Ministry of Statistics and Programme Implementation (MoSPI) said.
Forecast
What did economists predict?
A Mint poll of 21 economists had predicted a decline in retail inflation to 3.2% for April from March's rate of 3.34%. This is third consecutive month with an inflation rate below 4% and longest continuous period of declining inflation in at least five years.
Food prices
Key food prices remain high
Despite the overall dip in food inflation, prices for key items such as fruits, oil and fats continue to remain high.
In April, cereal, meat and fish, eggs, vegetables and pulses witnessed a slower price rise than the previous month while fruit and oil prices increased.
Milk prices also increased in April as compared to March.
Overall inflation for food and beverages rose by 2.14% annually in April, down from 2.88% annual growth reported in March.
GDP
GDP growth forecast revised amid inflation decline
Last month, RBI's MPC revised India's GDP growth forecast for 2025-26 to 6.5% from an earlier 6.7%.
RBI Governor Sanjay Malhotra said the cut was due to global trade and policy uncertainties, especially US President Donald Trump's unexpectedly steep tariffs on the economy.
As a result, RBI's focus may shift from controlling inflation—forecasted at 4% in 2025-26—to boosting credit and supporting the economy.