Retail inflation softens to five-month low of 4.28% in March

13 Apr 2018 Evaluate

India's retail inflation softened to a five-month low of 4.28% in the month of March 2018, as against 4.44% in February 2018, mainly on account of easing food prices including vegetables. However, the inflation based on the Consumer Price Index (CPI) for the March was higher than 3.89% recorded in the same month last year. Besides, consumer food price inflation, a metric to gauge changes in monthly kitchen costs, also eased to 2.81% in March as compared with 3.26% in February but it was above the 2.01% in a year ago period.

As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the CPI (Rural, Urban, Combined) on Base 2012=100 for March 2018, stood at 4.44%, 4.12% and 4.28% respectively, compared to 3.75%, 3.96% and 3.89%, respectively in March 2017. The index value of CPI for combined stood at 136.5 for the month of March. The data also showed that Consumer Food Price Index (CFPI) for all India Rural and Urban for March 2018 stood at 3.63% and 1.22%, respectively, compared to 1.85% and 2.42%, respectively in March 2017. The index value of CFPI for combined stood at 135.5 for the month under review.

Inflation in the vegetables segment cooled to 11.7% in March from 17.57% in the previous month, while prices of pulses and products continued to fall at (-) 13.4% as compared with (-) 17.35% a month ago. The rate of price rise in the protein rich items like eggs, milk and other products too moderated in March as against the previous month. However, inflation in fruits basket was higher. Besides, housing inflation remained almost flat at 8.31% in March as compared to 8.28% a month ago, while fuel and light inflation, which has seen an uptick since July, eased to 5.73% in March from 6.80% in February.