From the published data National Statistics Office (NSO) on Friday showed that retail inflation, as measured by the consumer price index (CPI), rose an annual 4.7% in April, down from the previous month’s 5.7% and below the RBIThe upper tolerance limit is 6%. The food price index slowed to 3.8% in April from 4.8% in March. Urban inflation was higher at 4.9%, while rural inflation was 4.7%.
The data showed that prices for several key food and non-food items eased, with the exception of some pressure in grains, spices, personal care products, and clothing and shoes. Economists said the RBI is expected to continue its interest rate pause and assess the impact of its previous rate hikes. They also said that the future course of inflation will be determined by the monsoon Rain Spread and the impact of The young weather factor.
Separate data showed that industrial production index (IIP) growth slowed to 1.1% in March, compared with 5.8% in the previous month and lower than the 2.2% in March 2021-22. Manufacturing growth slowed to 0.5% in March, compared with growth of 1.4% in the same period last year, while the electricity sector contracted by 1.6% over the month, compared with growth of 6.1% in March 2021-22.
